The Queensland headquarters of the Red Cross has been sold for $19 million following a sales campaign that yielded strong buyer interest.
The four-level medical office building at 49 Park Road in Milton, also known as ‘Humanity Place’, occupies an elevated 1,902sq m corner site, has 2,475sq m of net lettable area and 66 secure car bays.
Red Cross provides community health, disaster recovery management, first aid and administration from the site, attracted by its central location to public transport for staff, arterial road accessibility and elevated geography located above the 2011 and 2022 flood lines.
The property, which is 100% occupied, is also tenanted by national cardiology group Advara Heartcare and CDI lawyers.
It was sold following an Expressions of Interest campaign run by Knight Frank agents Sam Biggins, Blake Goddard and Matt Barker.
Mr Biggins said the sales campaign was highly competitive, with seven offers received at the close of the campaign.
“We had engagement with a broad cross section of buyers interested in this asset, including private high-net-worth investors and family offices, syndicators and larger asset managers.
“The asset was sold at a premium rate compared to other office buildings in the area, with the value strengthened by the medical-office thematic with strong occupier covenants.
“Its flood-free status was also appealing, being located above the 2011 and 2022 Brisbane flood lines.
“The purchaser was a local private investor who took recent transactions negotiated by Knight Frank in the Milton and Park Road precinct as being a positive sign for regeneration of this renowned dining precinct.”
Mr Goddard said 49 Park Road was prominently positioned within Milton, with its prime location and quality reflected in its strong occupancy history.
“Being situated on an elevated corner block with two street frontages, the asset provides long-term land value preservation,” he said.
“It also benefits from being close to major transport infrastructure and an abundance of retail amenity.
“Offering significant potential for future development opportunities, along with the ability to capture future rental growth, 49 Park Road will allow the incoming purchaser to capitalise on Brisbane’s growth trajectory.
“The outlook for the Brisbane fringe market remains positive, with strong tenant demand, low vacancy, sustained absorption, and further rental increases expected over the next 12 months.
“As a city, Brisbane continues to experience growth, with the upcoming 2032 Olympics being one of the biggest drivers.”
Since being constructed in 2005, 49 Park Road has undergone various upgrades (most recently in 2020/21), and has a 5 Star NABERS rating.
It was sold with a WALE of 3.95 years (by income) at an initial yield of 7.39%.
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