A Newcastle West showroom offered by Fantastic Furniture with a leaseback has sold for $7.3 million.
The deal reflects a 7.15 per cent net yield and values each square metre of lettable area at $2,286.
With options the occupier can stay until late 2035.
The new landlord is a Sydneysider.
Savills’ Nick Lower, Ollie Ridley and Nick Peden were the agents.
The showroom covers an 1808 sqm site zoned B4 – meaning it could make way for 20 metre-tall structures (story continues below).
Any redevelopment would capture views of the Hunter River, Newcastle CBD and Nobby’s Light House.
“978-980 Hunter Street captured the attention of both investors and developers from New South Wales, Queensland and Victoria due to its strong covenant and location,” Mr Lower said.
“There is potential to redevelop the existing building and exploit the additional 6:1 FSR (Floor Space Ratio maximum) on the site,” according to the executive.
Mr Ridley added “commercial assets with secure long-term income and development upside are at the top of investors’ lists, especially when located in areas tipped for future growth”.
The showroom has a loading dock off a second street.
About 31,294 cars pass it a day, the agents added.