A fully leased, modern A-Grade office building located in Brisbane’s emerging Hamilton Northshore Priority Development Area (PDA) has sold for $18.5 million.
A private investor acquired the 381 Macarthur Avenue office property, which comprised a Net Lettable Area (NLA) of 2,846sqm on a 2,399-sqm site.
The property, which features a Weighted Average Lease Expiry (WALE) of 2.3 years, boasts minimal forecasted capital expenditure requirements and provides substantial benefits in terms of depreciation and warranty.
The Hamilton Northshore PDA will become home to the Brisbane Athlete Village for the Brisbane 2032 Olympic and Paralympic Games.
The Queensland Government estimated the Northshore Hamilton PDA will eventually have over 14,000 dwellings and be home to more than 24,000 residents.
Cushman & Wakefield’s Mike Walsh and Peter Court sold the property.
Mike Walsh, Cushman & Wakefield’s Director, Joint Head of Middle Markets, QLD said the building holds a strategic position within the Hamilton Northshore PDA, which is an urban renewal precinct spanning 304 hectares.
“Situated just 5 kilometres from the Airports and 5.5 kilometres from the CBD, the area has been designated as the future home of the 2032 Olympic Village and is expected to house over 15,000 people,” Walsh said.
“From a broader market perspective we have had a positive start to the year from an activity standpoint. Clearly the market is highly price sensitive at present and after reaching a nadir at the back end of 2022, there is a renewed appetite and desire to transact from a mix of purchaser groups on the proviso pricing guidance is realistic.”
“Our team currently has over $180 million of Mid markets assets in Due Diligence across the eastern seaboard, with another $250 million worth of stock currently in the market or forthcoming shortly giving us a very accurate lens as to current market dynamics. So if you consider that volume in the context of what traded in the preceding 12 months it hopefully sets us up for a positive 2023.”
Peter Court, Cushman & Wakefield’s Director, Joint Head of Middle Markets, QLD said offering high-quality improvements, requiring minimal forward-looking capital expenditure, the asset guarantees 100% occupancy within an emerging office precinct.
“The acquisition aligns with the investor’s growth strategy and demonstrates their confidence in the potential of the Hamilton Northshore PDA” he said.
Recent research found that Brisbane’s suburban office market saw transaction levels fall last year as overall activity fell, but sales were expected to pick up in 2023.
Knight Frank research found that there was a total of $266.66 million in transactions above $10 million recorded in Brisbane’s suburban office market during 2022, a 44% drop on the record $479 million in 2021.