This article is from the Australian Property Journal archive
FULLY-leased Hobart CBD building Murray House has sold for over $9 million, with the 5.73% yield believed to be much firmer than expected.
Located at 73-81 Murray Street, the 2,327 sqm building is just 50 metres north west of Hobart’s central retail block and has an extensive street frontage of 37 metres, opposite Mona’s Hanging Garden entertainment precinct.
It is leased to nine fully leased to a mixture of nine retail, office and education tenants with a passing gross annual income of approximately $686,862 and weighted average lease expiry of circa 2.3 years.
The property is part four levels with ground floor retail whilst the two upper levels and a smaller lower ground floor level are utilised for office and education uses. Tenants include Running Edge, Croc Shop, Altec College, Velocity Education & Training, Epoch International, AEC Simply Studies, Expert Education and Visa Services, He Zhou and J & L Consultancy.
According to the Property Council of Australia, Hobart posted the tightest CBD office market vacancy rate in the country in July, at 5.1%, with no new office buildings currently under construction.
For further information or to arrange a private inspection or virtual tour, please contact Knight Frank or Colliers.
Leon Ma and Daniel Wolman of Colliers, together with Richard Steedman and George Burbury of Knight Frank negotiated the $9,018,000 sale.
A block over, an expressions of interest campaign closed last week for the O’Brien Glass warehouse at 125 Bathurst Street, offered with approval for a 10-level hotel development.
The site was expected to appeal to prominent Apple Isle hotel players such as Singaporean group Fragrance, which recently disposed of a much more difficult Hobart site that formed part of its $230 million plans to build the city’s two tallest towers.
