The two level 2,484sqm commercial building at 2092 Logan Road was purchased by DPA Property Group Pty Ltd who is also the adjoining property owner. Hunter Higgins and Philip O’Dwyer of Colliers International marketed the property via an Expression of Interest campaign which generated 7 offers from local and interstate investors.
“At the close of the EOI we shortlisted three parties, with DPA Property Group being the strongest contender with a cash unconditional contract settling within a month,” said Mr Higgins. “They know the area well and could see the future potential of the asset adjoining their existing property and being across from the Westfield Garden City and within Principal Centre zoning with development potential of up to 15 storeys (STCA).
“We understand their intention is to refurbish the release the asset. The weighted average lease expiry (WALE) is currently under 1-year across 12 tenancies. They will work through the tenancies over time as they vacate or renegotiate leases and fitout plans with the existing tenants who wish to remain. Current net income is $205,000pa with a potential fully leased income being $630,000pa,” said Mr Higgins.
Mr O’Dwyer said the market is the most buoyant they have seen in a long time. “On-market assets with passing income and value-add potential are very limited, and there is a good depth of purchasers considering the low interest rates. This is resulting in strong sales rates, sharpening yields and decreasing settlement time.
“Highly competitive investors are paying a premium for these type of income producing value-add assets, so now is the time for owners who are considering selling, to be taking advantage of the strong market conditions and taking their properties to market,” said Mr O’Dwyer.
Mr Higgins said the Brisbane market is attractive to investors as it is on the cusp of a significant growth phase with Brisbane LGA annual population growth outperforming Australia and Queensland overall over the last 5 years. As well as the City going through its biggest ever infrastructure boom of over $45 billion in projects currently underway.
“The Brisbane metro office market is the third most improved market throughout Australia with vacancy tightening nearly 2 percentage points. Net demand reached an eight-year high of circa 32,630sqm in the first half of 2019. Gross rents have been increasing gradually, incentives are starting to decline and yields across all sectors have tightened.
As a result of the strong market fundamentals and the sales activity we have grown our Brisbane City & Metro Investment Sales team recently by recruiting a major expert in the market, Tom O’Driscoll in the role of Director, who will be commencing work with us from 2nd December. We now have experts specialising in strata investments, Asian markets, premium investments, as well as restructuring and insolvency property services,” said Mr Hunter.
Logan Court is positioned on a 3,976sqm land holding in the heart of Upper Mount Gravatt, with prominent 32m frontage to Logan Road and approximately 60,000 car passing daily. The property also offers onsite car parking with 77 allocated bays.