A circa 21,448sq m super lot on the corner of Smith Street, Cawthorne Street and Light Terrace in Thebarton has sold for $23.625 million to a local private investor.
The sale was negotiated by Max Frohlich of Knight Frank and Jamie Guerra and Anthony De Palma of Leedwell Property on behalf of the vendor, Curated Capital.
The fully leased asset incorporates around 13,100sq m of clear span, high clearance, sprinklered last mile logistics accommodation across ten tenancies, with future development options to suit a multitude of uses up to six (6) levels in height.
Mr Frohlich said: “The buyer intends to retain the asset for light industrial use for the foreseeable future, with this location in strong demand for last mile logistics users.
“In the meantime they will capitalise on the growth in the area with the asset positioned in the immediate vicinity of Adelaide’s $3.8 billion bio medical precinct – the largest health and medical research precinct in the Southern Hemisphere, along North Terrace.
“Thebarton is a highly regarded inner western suburban mixed-use precinct, that continues to gentrify.
“This site will benefit from significant mooted development in the area, including on the balance of the former Coca-Cola site next door, the new $3.2 billion Women’s and Children’s Hospital along Port Road and a 1000-home residential development on the 8.4-hectare former West End Brewery site.
“The site’s connectivity grants easy access to major destinations, with a major advantage being the proximity of Adelaide’s free tram, just 500 metres away.”
Mr Guerra said the buyer of the super lot would have the benefit of not only growth in the future, but positive rental reversion, with the site currently under-rented.
“It’s a prime inner city ring investment with secure holding income, as well as the added bonus of major development upside for the future,” he said.
“With a scarcity of premium land holdings in established inner ring precincts of Adelaide, opportunities to acquire sites such as this are few and far between.”
Mr Frohlich said the market was still active, with investors continuing to look for opportunities of scale.
According to Knight Frank research, during Q2 2024 there 15 industrial sales above $5 million, with the total collective sale value being $263.7 million, bringing the 2024 calendar year total $357 million.
“This marks a significant improvement on Q1 sales, in which only nine transactions were recorded for a value of $93.3 million,” said Mr Frohlich.
Mr Frohlich said the current outlook for interest rates was also the most favourable experienced in the past 12 months.
“Favourable inflation data has led the RBA to hold the cash rate and with a significant shift in the forward yield curve, the market is predicting a first rate cut as early as January 2025,” he said.
“This is likely to have positive impact on sentiment for commercial property markets across Australia which will in turn flow on to our market here in Adelaide.”
Related Articles
