Brisbane developer buys the freehold office and warehouse for $2.7 million.
Forrester Properties Pty Ltd has purchased a two level freehold office and warehouse in the heart of the Fortitude Valley for $2.7 million with plans to develop the site into a residential apartment project.
Hunter Higgins, Associate Director of Investment Services at Colliers International who marketed the 398 St Pauls Terrace property said it is currently 100 per cent occupied by Salvation Army who are likely to vacate the property at the end of their three year term in August next year.
“There was a lot of interest for the property as an investment, but due to its MP2 zoning, prominent corner position and expiring lease the 772sq m site has high mixed-use development potential and has mostly attracted the local developers.
“Fortitude Valley is Brisbane’s highly sought after fringe precinct that is experiencing strong economic growth and a development boom with a number of urban renewal and mixed-use projects currently in progress,” said Mr Higgins.
“The availability of sub $5 million commercial assets is becoming increasingly scarce in this region as many older and smaller properties are being amalgamated and redeveloped.
Scott Forrester, Project Manager at Forrester Properties Pty Ltd said their recently completed developments currently consist of South Central and The Capitol Apartments in South Brisbane. “We were looking at Fortitude Valley as our next area to develop because of the activity currently happening in this area.
“This site gives us an opportunity to build a 10 storey boutique apartment development at the doorstep of the massive RNA Regeneration Project. We are currently in the process of preparing plans for Council and will lodge an application for approximately 56 one and two bedroom apartments with about 100sq m of ground floor retail,” said Mr Forrester.
“Considering the site is only a block away from the Green Square, Brunswick Street and Fortitude Valley train station it is ideally positioned for professionals who work in the area or the CBD and are looking for convenience of an inner city lifestyle.
“Positioned on a corner block we have three street frontages which will allow our apartments to have natural ventilation and a good outlook. We will see the project from start to finish with our construction arm building the project and our property management team retaining the management rights. Lindsay Mack, Principal Architect from Opus International Consultants has been appointed for the project design,” said Mr Forrester.
Mr Higgins said the building is currently tenanted by Salvation Army for a three year term which commenced on 1 September 2012 and expires on 31 August 2015 with a three year option. “The current lease arrangement brings in a net passing income of $88,684 per annum.”
The building area totals 373sq m comprising ground and first floor office, commercial kitchen, showroom and warehouse positioned on a prime 772sq m corner site with three street frontages. The property has superior car parking ratio of 11 onsite car parks for its 373sq m NLA, which equates to a car parking ration of 1:33.
Building underwent minor refurbishment in 2012 which included new external entertaining areas, modern kitchen facility, upgraded offices and reception area. Owner of the property is Range Holdings who is currently selling a portfolio of investment assets comprising of mostly industrial properties across Brisbane which are being marketed by David Seale, Associate Director of Industrial at Colliers International.