Brisbane Suburban Retail Asset Sells for $4M+

• An interwar retail property at 498 Waterworks Road in Ashgrove has sold for $4.1m
• The property consists of a two-storey building with 402sq m of NLA on a 556sq m site
• It is fully leased to 3 tenants – Ashgrove Cycles (Giant Ashgrove), Our Sun Room and Corn Street Café, with additional income from two Telecom towers and a residential unit
• The property sold for a passing yield of 4.83% and a rate per net lettable area of $10,199, highlighting the increase appetite for quality inner city investments

A suburban retail property in Brisbane has sold in an off-market deal for more than $4 million.

The fully-leased property at 498 Waterworks Road in Ashgrove has 402sq m of net lettable area on a 556sq m site.

This two storey Art Deco building, designed by Walter Kerrison, was constructed in 1937 for Sydney George Hughes. It opened as the Victory Cash Store and has since housed a variety of retail businesses.

Today, it is leased by three tenants – Ashgrove Cycles (Giant Ashgrove), which has occupied the space for more than 25 years; Our Sun Room, which sells affordable fashion, accessories and homewares and has occupied the space for seven years; and Corn Street Café, which has occupied the space since 2023.

The property has been purchased by a private investor for $4.1 million in an off-market deal negotiated by Jacob Heinke and Hayden Ryan on behalf of the vendor, Pennant Pty Ltd.

It sold for a passing yield of 4.83% and a rate per net lettable area of $10,199, which was a strong benchmark rate for buildings in the area.

Mr Heinke said the property appealed to investors due its location in Brisbane’s affluent northwest suburb of Ashgrove, situated just five kilometres from the CBD.

“It’s also right next door to the Ashgrove West Shopping Centre, in an area with plenty of passing pedestrians and traffic,” he said.

“The asset is fully leased to long-standing commercial tenants in a thriving retail precinct.

“In addition to the income being underpinned by three main tenants, additional income is generated from two Telecom towers and a small residential unit upstairs.

“Knight Frank’s heightened expertise in matching opportunities with the right buyer ultimately contributed to a successful sale and optimal result for the vendor in this case.”

Mr Ryan said: “This transaction highlighted the strong demand for freestanding commercial assets in the city fringe.

“Recent activity in the city fringe has rejuvenated investor interest, and with benchmark transactions now established, we expect improved vendor sentiment and an increase in transaction volume throughout 2025.”