Gross yield of 8% on offer for Dank Street guitar shop in Sydney's Waterloo

A guitar shop on trendy Dank Street in Waterloo in Sydney’s inner south is being marketed at small investors and those with self-managed super funds offering an attractive gross yield of 8%.

The guitar shop occupies shop 6 at 9-15 Dank Street, a mixed-use building developed and built by family-owned property development and investment company Manicaland five years ago.

The 69-square-metre shop has an asking price of $474,000 plus GST and is currently leased to Playa Playa on a five-year lease, which commenced in August this year with a five-year renewal option.

Playa Playa is paying a starting rent of $38,000 per annum gross plus  GST with annual rent increases of 3%.

The property is being marketed by Anthony Tripodi and Steve Hawksley from City Alliance Property – Waterloo.

Alex Zylberberg from Manicaland tells Property Observer that looking at the profile of buyers of similar properties sold in the same building in the last couple of years suggests it will appeal to “small mum and dad investors who might already have a residential portfolio and are looking to diversify into commercial property”.

He says it would also appeal to small self-managed super funds.

“We are currently working with a couple of enquiries,” says Zylberberg.

Dank Street is the retail heart of urban regeneration in Waterloo, featuring cafes, boutique stores, galleries and studios, and is especially popular on weekends.

Well-known establishments in Dank Street include the Dank Street Bakery and supermarket Fratelli Fresh.

According to census 2011 figures Waterloo is Australia’s second most upwardly mobile suburb, with weekly household income rising 167% between 2001 and 2011.

Just around the corner from Dank Street, the Amelia Street Café premises measuring 70 square metres are also up for sale with an asking price of $485,000 plus GST.

The property is being sold by Michael Gould of Deans Property Broadway.