Colliers International sells multi-level office building for more than $7million
A five-level office building at the east end of Adelaide’s CBD has sold unconditionally for more than $7million, following a competitive expressions-of-interest sale campaign that generated more than 60 enquiries.
Colliers International’s Alistair Mackie and Paul van Reesema brokered the deal for 122 Frome Street, after conducting more than a dozen inspections and receiving four formal offers.
“We anticipated keen demand from investors and owner-occupiers as the CBD property market is characterised by a distinct lack of quality offerings at present but the response exceeded our expectations,” Mr Mackie said.
“The successful buyer intends to occupy the premises as their national headquarters.
“There is also long-term inherent development potential, subject to council approval, under the Capital City zoning, which provides for development up to 53 metres – or 17 levels – in height.”
The University of Adelaide currently leases the 2,110sqm property on various terms expiring progressively until January 31, 2018, at which time it will vacate and relocate into a new building under construction on North Terrace, adjacent the new Royal Adelaide Hospital and South Australian Health and Medical Research Institute buildings.
“On a fully leased basis, 122 Frome Street generated a net income of about $725,000 per annum,” Mr van Reesema said.
“It was this potential that attracted the three under-bidders, all investors who planned to refurbish and relet the building.”
The modern office building occupies a prime corner site in the heart of Adelaide's East End precinct, with three street frontages to Frome Street, Pirie Street and Wornsop Avenue ensuring high exposure and excellent signage opportunities for the future occupants.
It features a full-height glass and gyprock fit-out throughout its open-plan office layout, and has a 2.5-star NABERS Energy rating, lift access to all levels and secure basement parking for 21 vehicles. There are male and female restrooms on all levels, together with showers and kitchenette facilities throughout.
“The building was offered for sale with a brand new, 15-person Schindler lift that was pre-purchased by the vendor and will be installed by the new owners, following the University of Adelaide’s lease expiry,” Mr Mackie said.
Mr van Reesema said the prospective buyers recognised the value of the property’s prime location, within close proximity of the CBD’s major commercial, government, retail and dining precincts.