This article is from the Australian Property Journal archive
APPROXIMATELY $70 million worth of commercial properties in Sydney were sold at auction this week, where government leased assets was the flavour of the day.
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Auctionworks auctioneer Jesse Davidson said in total 42 properties were offered for sale this week and 32 sold under the hammer, resulting in a clearance rate of 76%, which is significantly above the commercial auction market average.
The 32 sales totalled approximately $70 million.
The morning auction saw eight properties auctioned and five sold.
The first property sold under the hammer was a childcare centre at 73 Milner Rd Guildford, for $1.75 million. The centre has a license for 36 children and is leased to Little Amigos until 2024 on a current rental of $96,000 p.a. net. The property comprises a 256 sqm building on a 823 sqm site. The agent was Laing & Simmons` Joseph Assaf.
A development approved site at 9 Wrights Rd Drummoyne sold for $4.25 million. The 800 sqm site has a planning permit for 11 apartments. Belle Property`s Rocco Tripodi handled the campaign.
A freehold retail and office building at 21-23 Belmore St Burwood fetched $4.11 million. The three-storey property comprises 202 sqm of space with ground floor retail and two-levels of office space on the upper level. The retail space is leased whilst the office is vacant. The estimated fully leased rental is $133,600 p.a. The agent was John Hill & Co`s Gail Marshall.
An industrial property at 27-39 Cadgan St Marrickville changed hands for the first time in 25 years, selling under the hammer for $4.76 million. The 1,725 sqm land area is improved by a 842 sqm building with first floor office of 189 sqm. The agents were Metro Commercial`s Neville Green and The Edge Property Agency`s Achilles Peshos.
A double storey retail building at 244 King St Newtown fetched $5.01 million. The 400 sqm property occupies a 260 sqm land area and was sold with a long term tenant returning $262,880 p.a. The agent LJ Hooker Commercial`s Jim Marinos.
The Burgess Rawson portfolio auctions had 33 listings and majority of the properties were leased to the NSW government.
A NSW government leased property located at 324-330 Pacific Hwy Hornsby was the first property off the block and sold for $5.92 million. The large landholding of 4,590 sqm land area currently has a 636 sqm building, leased to the government on 5 + 5 + 5 year leases, returning $112,250 p.a. The site future residential development potential (STCA).
A NSW government property at 32 Gordon St Coffs Harbour sold for $2.75 million. The 433 sqm single level brick building on a 2,020 sqm site is currently returning $117,682 p.a.
A vehicle registration office at 1-15 River St Silverwater sold for $5.85 million. The 737 sqm building occupies a 5,952 sqm site, returning $294,272 p.a.
Another NSW government leased property at 64 Shoalhaven St Kiama sold for $1.5 million. The 173 sqm property is set on a 1,362 sqm site, returning $32,794 p.a.
A NSW government leased property at 476a Peel St Tamworth sold for $1.435 million. The 381 sqm building sits on a 2,675 sqm site, returning $77,610 p.a.
At 23 Central Rd Port Macquarie, a NSW government leased building sold $2.165 million. The 736 sqm building occupies a 8,226 sqm land area and is returning $103,054 p.a.
At 51 Aurora Ave Queanbeyan, a 1,073 sqm building on a 9,026 sqm site sold for $2.66 million. The property is leased to NSW government for $124,687 p.a.
At 2 Fox St Wagga Wagga, a 715 sqm building on a 4,054 sqm land area sold for $2.025 million. Again it is leased to the NSW government on a rental of $97,295 p.a.
At 167-169 Rusden St Armidale, a 593 sqm building on a 2,693 sqm site sold for $2.11 million. It is leased to the NSW government on a net income of $107,158 p.a.
The final NSW government leased asset to be auction, at 131-135 Rankin St Forbes sold for $2.65 million. The 2,004 sqm retail property is also leased to three retailers tenants and returns a total income of $248,394 p.a.
A KFC fast food outlet at 38 – 40 Victoria St Taree fetched $2.35 million. The 1,770 sqm site was sold with a brand new 10-year lease until 2024, returning $138,123 p.a.
A childcare centre at 38 Roberts Rd Jannali sold for $2.34 million. The 33 placement centre is leased to G8 Education to 2023 plus options to 2033, on a net income of $112,486 p.a.
An ALDI supermarket at 22/26-28 Kenthurst Rd Dural sold for $4.6 million. The 1,024 sqm property is leased until 2029 and is returning $272,115 p.a.
A row of shops on the corner The Entrance Rd and Coral St The Entrance sold including:
– Shops 1 & 2, 112.9 sqm property leased to Subway sold for $770,000. The net income is $33,972 p.a.
– Shop 3, a 53.5 sqm property leased to real estate agency Ray White sold $505,000. The net income was $25,000 p.a.
– Shop 4, a 48.6 sqm property leased to a cafe sold for $750,000. It is returning $39,548 p.a.
– Shop 5, a 58.9 sqm property sold for $505,000. The net income is $30,000 p.a.
– Shop 6, a 42.3 sqm leased to a restaurant sold for $380,000. It is returning $20,848 p.a.
– Shop 7, a 36.2 sqm shop sold for $325,000. It is returning $18,500 p.a.
– Shops 8, 9 & 10, a 99.8 sqm leased to a pizza restaurant sold for $610,000. It is returning $47,025 p.a.
– Shop 11, a 56.8 sqm shop sold for $340,000. It is returning $21,632 p.a.
Shop 4 – 2 James St Toronto, Newcastle sold $825,000. The property is leased to Domino`s Pizza on a rental of $54,091 p.a.
Next door, Shop 3 – 2 James St sold for $1.255 million. The property is leased to Anytime Fitness on a rental of $86,211 p.a.
Finally a freehold investment at 111 Kendal St Cowra sold for $1.2 million. The property is leased to Amcal pharmacy from December 2009 plus option to 2030. It is returning $98,695 p.a.
Australian Property Journal
