Real estate investment manager Marquette Properties has bought the 189 Grey Street office tower in Brisbane’s Southbank for $104.4 million, as it continues to expand its syndication business.
The property was a 12-level, A grade office complex comprising 12,595 sqm of net lettable area and 146 car parks.
It was developed by Mirvac in 2005 and remains one of only seven office buildings in Southbank – Brisbane’s most tightly held office market.
“We are grateful for the opportunity to buy this asset and be custodians of a Mirvac designed, developed and managed building with enduring value and quality,” Marquette Managing Director Toby Lewis said.
“By measure of office fundamentals, the asset is one of the best buildings in Brisbane. Moreover, we’d argue that Grey Street is among the top three streets in Brisbane for office buildings, offering amenity which is among the best in our city.”
Lewis said that Southbank had a minimal office vacancy rate, entailing just 1 and a half floors at 189 Grey which were expected to be leased in the short term.
“We remain cautious but acquisitive and feel that the significant volatility across markets augers well for commercial property,” Lewis said.
“We will keep our assumptions around interest rates and cap rates conservative but feel next year will be a big bounce back for our industry.”
CBRE’s Tom Phipps negotiated the off-market acquisition from Mirvac, as the group continues its divestment strategy to fund recent acquisitions and its development pipeline.
“With very little REIT, wholesale or offshore direct capital currently active we are seeing syndicators, club investors and privates taking advantage of the current market volatility to secure quality assets that larger institutions deem too small or non-core,” Phipps said.
“We had made several approaches to acquire 189 Grey Street on Marquette’s behalf and were ready to act when Mirvac elected to sell.”