Interstate investors trade strata office
A New South Wales and Victorian investor have traded a modern Queensland office.
The 572 square metre single level strata, level 1, 220 Melbourne Street, South Brisbane, transacted for $3.5 million.
With four tenants in six tenancies, it earns c$331,000 annual net rent.
The weighted average lease expiry by income is 2.3 years.
The deal comes a week since we reported Sekisui House sold an office, Greenhouse, part of its $1.2 billion West Village complex across the road, for c$60m.
Sprawling strata
This pocket of South Brisbane is about a kilometre from the CBD (continues below).
“The purchaser was drawn not only to the strong yield but also the exceptional positioning of the building in one of Brisbane’s most dynamic and tightly held commercial pocket,” Colliers’ Tony Wang, who represented the Sydney-based seller, said.
“Being only a short walk to South Brisbane’s cultural hub, West End’s food and retail scene, West Village and the Brisbane CBD provides enormous value for tenants and long term security investors,” according to the executive.
“Melbourne Street continues to perform as one of South Brisbane’s strongest commercial corridors,” he added.
Co-agent Shaun Seeto said with local vacancy rates have been declining, demand for strata office space “will remain highly sought after”.
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