A private investor paid $2.3 million for two commercial properties with redevelopment potential on a prominent corner fronting Cambridge Street in Wembley.
The sale was negotiated by Colliers International’s Ben Tana and Tory Packer, who said multiple bids were received for the leased properties at 224 Cambridge Street and 10 Gregory Street, which had a combined land area of 734sqm.
“With annual net income of $131,000 and future development potential, there was strong competition to buy these properties,” Mr Tana said.
“Wembley has an established residential area and a thriving commercial centre, and its location just ten minutes from Perth’s CBD, makes it a prime focus for investors seeking assets with future development prospects."
The Cambridge Street building is a popular convenience hub that was constructed in the 1950s and is occupied by a successful café, a hair salon and a mobility equipment supplier.
The Gregory Street office building, which has rear access to Creech Lane, is also occupied by the mobility equipment supplier.
Ms Packer said the tenant mix provided a stable holding income and was a key attribute in the 5.7 per cent yield achieved in the sale.
"These prominent sites have just under 58 metres of frontage to Cambridge and Gregory streets and a flexible commercial zoning allowing for a range of future uses including mixed-use residential and commercial developments, medical, showroom and retail,” Ms Packer said.