This article is from the Australian Property Journal archive
A LOCAL investor developer has forked out $2.3 million for a short stay accommodation property in Richmond, on a yield of 5.3%.
Burgess Rawson’s Rick Silberman, Raoul Holderhead and Mingxuan Li negotiated the sale of the property at 151-153 Hoddle St Richmond.
Silberman said the buyer was a local who is a long-time Burgess Rawson client, who also purchased the Foodworks anchored neighbourhood shopping centre in Morwell from the Portfolio Auction last Wednesday.
The sale price reflects a building rate of $6,020 per sqm and land rate of $8,303 per sqm.
The 382 sqm two-level building is operating as Landing Pads short stay accommodation and was sold with a secure 5-year lease to 2019 plus further options to 2029, currently returning $122,003 p.a. with fixed 3% annual increases. It occupies a 277 sqm land area.
“Formerly the iconic Honiton Flats built in 1940, the property is perfectly located for short stay accommodation being at the doorstep of the CBD and just metres away from West Richmond Station.
“The commercial real estate investment market remains active and we are seeing incredible demand for well-located inner city freeholds particularly with secure income streams and favourable rental growth,” Silberman said.
Australian Property Journal
