The Tavakoli family has sold Lane Cove’s Rosenthal Arcade.
The buyer, a local family, is paying $13.888 million – reflecting a 6.1 per cent market yield.
Based on the net passing income, the return is 5.3pc.
About a fifth of the triple storey retail and office complex is vacant.
On a 734 square metre B2 Local Centre zoned site, the property offers development upside.
Savills’ Jordan Lee, Stuart Cox, Andy Hu and Jonathan Broome were the agents.
At 79-83 Longueville Road, within the Lane Cove Village and adjacent to The Canopy – a retail complex with a public space – Rosenthal Arcade contains 1689 sqm of lettable area and 14 basement car parks (story continues below).
The bulk – 1222 sqm – is for 11 office tenancies.
There are nine ground floor shops.
“Lane Cove has undergone significant restructuring from former low-density housing, to now proudly providing over 1900 newly completed medium and high density dwellings,” Mr Cox said.
“There is significant value uplift for the future owner in securing…tenants for the vacant commercial suites situated on levels one and two,” he added of the property.
“The building also lends itself to a residential conversion or shop top housing redevelopment as an alternate use under the existing…zoning, with a potential gross floor area of 1835 sqm across the site and a floor space ratio of 2.5:1,” according to the agent.
Elsewhere in the suburb, last month, PHFB Investments sold a two storey commercial building at 2A Phoenix St for $10.4m.
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