A boutique commercial asset in Brisbane’s inner northeast has sold for $4.7 million-plus following strong interest from local and interstate buyers.
The office and hi-tech industrial building at 1110 Kingsford Smith Drive was purchased by a Sydney-based investor, Instrument of Thy Peace Pty Ltd, from Radnil Pty Ltd for $4.7 million.
The deal was negotiated by Knight Frank’s Christian Sandstrom, in conjunction with Adrian Smith of Amir Prestige Commercial.
The two-level building, which is 100% occupied by Odyssey Gaming and Rubicon Design & Construct, has a total net lettable area of 1,196 sqm comprising 741sq m of office and 455sq m of tilt slab warehouse.
It sits on a 1,831sq m site, which also has 26 car parks. The freehold property was offered to the market on a fully leased net income of $368,364 with a
WALE of approximately 3.5 years with the sale price reflecting a passing yield of 7.7%
Mr Sandstrom said the Expressions of Interest campaign for the boutique commercial asset generated strong levels of interest from local and interstate investors, with multiple offers.
“The interstate purchaser was attracted by the strength of the two respected tenants, the building’s prominent location on Kingsford Smith Drive, the high quality of the building refurbishment undertaken by the owner,” he said.
“The property’s strategic location was also a drawcard, being centrally positioned on the high-profile Kingsford Smith Drive within Brisbane’s most desirable industrial suburb, Eagle Farm, between the Brisbane CBD and Brisbane domestic and international airports.
“Opportunities of this nature are incredibly rare, with Eagle Farm recording the lowest number of sale transactions per year across major industrial suburbs in Brisbane over 2020.”
Mr Sandstrom said Eagle Farm had undergone a transformation from a traditional industrial hub to more of a mixed-use commercial and hi-tech business precinct, with surrounding residential and retail in the Hamilton Northshore urban precinct.
“These changes, along with significant local infrastructure spending within the immediate area, as well as excellent local amenity, has improved tenant retention and attraction,” he said.
Mr Smith said the outcome was a great result for both the buyer and the seller and reiterated Mr Sandstrom’s comments about there being strong demand for such assets.
He added that there were ample buyers who missed out looking for similar types of assets across the South East Queensland region.