Comprising a net lettable area of 1,475sqm (more or less) at 7-9 Union Street, the property is spread over four freehold titles, featuring two ground-floor commercial tenancies and five apartments on each of the two upper floors.
Bayleys City & Fringe team director Alan Haydock says the property’s position on the corner with Nelson Street - the main arterial providing access from the north and north-western motorways directly into the CBD’s waterfront precinct – is a key drawcard for investors.
“The property provides future development potential and an impressive income generated by office, retail, residential and signage tenancies, ticking all the boxes for investors in the current market.
“More challenging immediate development fundamentals mean investors have turned their attention long-term to optimised assets that meet lenders’ quality thresholds.
“Well-located properties generating an immediate and varied income are proving particularly popular in the current environment. At the same time, the reboot of tourism has seen demand for quality retail, residential and commercial accommodation increase across the CBD,” he says.
Mr Haydock is marketing the Union Street premises for sale with colleague Damien Bullick.
The property is offered for sale by tender, closing at 4:00 pm, Tuesday 11th April 2023 (unless sold prior).
Comprising 10 residential apartments, three commercial/retail tenancies and a long-term APN signage lease, the property generates a combined annual net income of $678,157 plus GST and outgoings.
Totalling 886sqm (more or less), the freehold, high-profile corner site is zoned Business – City Centre, permitting intensive mixed-use development to 40m.
Bayleys City & Fringe team associate director Damien Bullick says the property occupies a commanding position at the top of the CBD on the Union Street ridge, gaining exposure to more than 120,000 passing vehicles daily, and an established residential catchment.
The property at 7 Union Street comprises a single-level building and retains many heritage attributes typical of its 1900s-era construction.
Its main entry from Union Street leads into an open-plan high-stud retailing space. Toward the rear of the building are a stockroom, kitchen facilities and a bathroom with a shower. Secondary access leads into this area but is used predominantly to deliver goods.
“This property is well presented, having been sympathetically maintained over the years. It would suit a range of retailers who recognise demand generated from thousands of apartments within a five-minute walk of this destination, along with several nearby developments currently under construction,” Mr Bullick says.
The property at 9 Union Street comprises three-level commercial and retail premises with on-site car parking for 12 vehicles. It features two commercial tenancies on the ground floor and ten apartments on levels one and two.
An electric scooter retailer and service centre occupy the larger commercial tenancy, which features a main entry from Nelson Street with a lease to July 2025 plus one further renewal right of two years.
Physiotherapist Grace Wellness Service occupies the balance of the ground floor with a tenancy featuring frontage to Union Street and a four-year lease to May 2026, and two further renewal rights of two years each.
Mr Bullick says levels one and two provide five New York loft-style apartments apiece, with polished concrete floors, modern kitchen and bathroom facilities and spacious floorplans individually monitored by alarms and water/power meters.
“The property offers substantial cash flow from two separate buildings. In addition, there is scope for more intensive site development, given the corner position and strong underlying development fundamentals.
“It’s an ideal investment opportunity with the income split between residential, office, retail and signage tenancies, at the same time, presenting as a potential development or land-banking option with the right to build a high-rise apartment block over time,” he says.