With commercial property investors activelyreturning to the market seeking well-located assets with sound tenant covenantsand future upside, agents marketing a Freemans Bay office-warehouse buildingwithin a favoured mixed-use enclave are expecting solid interest from buyers.
The well-presented and functional two-level propertyat 41-45 Ireland Street has a stable leasing history and is currentlyfully-occupied by multinational tenant Vega Global NZ Limited, the largestaudio-visual/IT solutions provider in the Asia-Pacific region.
There is a 4-year lease in place with a right ofrenewal taking final expiry out to mid-2030, and returning annual net income of$184,000 plus GST, with inherent fixed annual growth.
In recognition of the sought-after Business-MixedUse zoning overlay that permits a broad range of uses and allows moderate-highdensity residential and commercial development, there is a terminationprovision in the lease that favours the landlord, providing options forprospective owner-occupiers or developers.
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The 636sqm site has wide north-facing frontage toIreland Street. The circa-1980s property has lettable floor area of 684.55sqmand has been assessed at 120-percent new building standard, considered A-gradein the market.
There are multiple access points, including through aroller-doored loading dock, and 10 secure basement car parks. Office space isvariously configured on the ground floor plus across a generous mezzanine, andthe warehouse, which is currently used for goods storage, could be reconfiguredas character office space in the future.
Damien Bullick and Alan Haydock of Bayleys MetroMarkets team are marketing the property by tender closing Thursday 11thMarch, unless sold prior.
Bullick says with the cost of debt shiftingdownwards and new investors in the market seeking better returns than money inthe bank, the subject property is exactly what clued-up buyers are on the huntfor.
“There is a scarcity of investment propertyavailable in the inner west frame of the city generally, and when you narrow itdown to this select pocket in Freemans Bay, which has traditionally been thestronghold of long-term local investors, it’s a hens’ teeth opportunity.
“The wider Victoria Quarter precinct leverages goodtransport connectivity, innovative mixed-use development and a high level ofamenity, and as this Ireland Street property is underdeveloped given thefavourable zoning, a new owner could ultimately add value by going higher orvia a full-redevelopment.”
Alternatively, it could be purchased with futureoccupation in mind by a forward-thinking business owner.
Haydock says the opportune Business-Mixed Use zoningdesignation gives a buyer many options down the line – whether that’s afull-blown residential project or a mixed-use one.
“Being so close to the green spaces of Victoria Park,having the convenience of the Victoria Park New World at hand, and with the PonsonbyRoad retail and hospitality precinct a walk or easy bus ride away, residentialliving is a natural fit for this site.
“A buyer could sit on this offering as a classicbottom drawer passive investment with good income in place, comfortable thatthere is potential to add-value in time, or exercise the early terminationclause to accelerate a redevelopment or conversion project.
“Whichever path is chosen, the fundamentals of theproperty and the pivotal location are assured and with the market resettingafter an extended period of flux, this is an opportunity for a buyer to get ajump on the next real estate cycle.”
- Supplied by Bayleys
