This article is from the Australian Property Journal archive
A three-level office building at 123 Gotha Street in Brisbane’s Fortitude Valley has sold to a local investor for $9.725 million.
The building is fully-leased by international tenant Torrens University Australia and includes 1,638sqm of net lettable area on a 902sqm inner city site, with 23 secure carparks.
Matt Barker, Blake Goddard and Christian Sandstrom from Knight Frank sold the property via an expressions of interest campaign, on behalf of Properties & Pathways.
“The sale represented a very healthy return to our investors who have enjoyed a bulletproof cashflow during their ownership period, despite Covid and interest rate rises,” said Cal Doggett, managing director at Properties & Pathways.
“Ultimately it was a bittersweet sale as the area is obviously gentrifying and dominant corner positions like this don’t come around all that often, however, we put our investors first and decided to recycle some of this capital into other investment opportunities.
The property has future repositioning and development potential, with its prominent corner positioning, boasting 30.4 metres of frontage to Gotha Street and 27.2 metres to Agnes Street.
“123 Gotha Street offered an opportunity to secure an established asset with future repositioning and development potential in Brisbane’s fastest growing near-city office market, and as such it was highly sought after,” said Barker.
“The current secure cash flow and quality covenant appealed to investors, but there is a significant value-add opportunity through the execution of a re-leasing initiative which appeals to the growing Fortitude Valley occupier market.”
Currently asset boasts a WALE of 1.86 years by income and brings in a net income of $905,116 per annum with fixed reviews of 3.5%.
“The influx of occupiers to the established location also provides future potential to split floorplates to house multiple tenancies that would be well serviced by the location’s connectivity to an abundance of transport and amenities,” added Barker.
“The natural sprawl of the Brisbane CBD has seen multiple properties in the Fortitude Valley zoned ‘Principal Centre’ to provide for the largest and most diverse mix of uses and activities that forms the core of an urban settlement, providing future development potential for the property.”
Goddard also noted the properties location as a major drawcard, with Fortitude Valley’s continuous transformation thanks to both public and private investment.
“Defined by world-class shopping, fine dining, striking architecture and abundant transport infrastructure, Fortitude Valley has undergone one of the most significant urban rejuvenation processes in Queensland,” added Goddard.
“Positioned in close proximity to the Fortitude Valley’s major road thoroughfares, 123 Gotha Street is at the epicentre of the suburb’s activity including cafés, bars, nightclubs, homewares, fashion and entertainment facilities.
123 Gotha will also benefit from major projects currently underway or in planning including Brisbane’s Valley Heart Precinct, Fortitude Valley Metro, Cross River Rail, Brisbane Metro, Brisbane Live, Waterfront Brisbane, Queens Wharf and of course the upcoming 2032 Brisbane Olympics.
