A fully occupied office building in Brisbane’s inner city with future repositioning and development potential has sold following significant buyer interest during the sale campaign.
The three-level property at 123 Gotha Street in Fortitude Valley was sold by Properties & Pathways and purchased by a local Brisbane private investor for $9.725 million following an Expressions of Interest (EOI) campaign run by Matt Barker, Blake Goddard and Christian Sandstrom of Knight Frank.
The building, which has 1,638sq m of net lettable area on a 902sq m site with 23 secure car parks, is 100 per cent occupied by international tenant Torrens University Australia, a subsidiary of the world’s largest education provider.
It was sold with a WALE of 1.86 years by income, with a net income of $905,116 per annum with fixed 3.5 per cent reviews.
The well-exposed property occupies a prominent corner position with city views in Brisbane’s dominant near-city market, with frontage of 30.4 metres to Gotha Street and 27.2 metres to Agnes Street.
Properties & Pathways’ Managing Director said: “The sale represented a very healthy return to our investors who have enjoyed a bulletproof cashflow during their ownership period, despite Covid and interest rate rises.
“Ultimately it was a bittersweet sale as the area is obviously gentrifying and dominant corner positions like this don’t come around all that often, however, we put our investors first and decided to recycle some of this capital into other investment opportunities.
“The same reasons which attracted us to the asset many years ago are still true today and we wish the incoming purchaser all the best.”
Mr Barker said there was significant buyer interest in the asset from local and interstate groups during the EOI campaign.
“123 Gotha Street offered an opportunity to secure an established asset with future repositioning and development potential in Brisbane’s fastest growing near-city office market, and as such it was highly sought after,” he said.
“The current secure cash flow and quality covenant appealed to investors, but there is a significant value-add opportunity through the execution of a re-leasing initiative which appeals to the growing Fortitude Valley occupier market.
“The influx of occupiers to the established location also provides future potential to split floorplates to house multiple tenancies that would be well serviced by the location’s connectivity to an abundance of transport and amenities.
“The natural sprawl of the Brisbane CBD has seen multiple properties in the Fortitude Valley zoned ‘Principal Centre’ to provide for the largest and most diverse mix of uses and activities that forms the core of an urban settlement, providing future development potential for the property.”
Mr Goddard said the Gotha Street property was primed to benefit from the continuous transformation of Fortitude Valley, a lifestyle and commercial hub next to the Brisbane CBD.
“Currently welcoming several retail, landmark office and residential developments, the precinct continues to benefit from public and private investment vying to secure a stronghold in Brisbane’s most vibrant district,” he said.
“Defined by world-class shopping, fine dining, striking architecture and abundant transport infrastructure, Fortitude Valley has undergone one of the most significant urban rejuvenation processes in Queensland.
“Positioned in close proximity to the Fortitude Valley’s major road thoroughfares, 123 Gotha Street is at the epicentre of the suburb’s activity including cafés, bars, nightclubs, homewares, fashion and entertainment facilities.
“It is also set to benefit from key city-shaping projects underway or planned in Brisbane including the Valley Heart Precinct, Fortitude Valley Metro, Cross River Rail, Brisbane Metro, Brisbane Live, Waterfront Brisbane, Queens Wharf and the upcoming 2032 Brisbane Olympics.”
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