Mixed-use $3 million property snapped up by Ray White agent

The Brunswick Street, New Farm, property received more than 180 enquires as 28 offers during an expressions of interest campaign.

At 587 square metres in total, the property consists of 227 square metres of retail space on the ground level, with two upper levels of residential units, and basement parking.

Ray White New Farm's Matt Lancashire bought the property for more than $3 million.Hunter Higgins, from Colliers International, negotiated the sale on behalf of Receivers and Managers Grant Thornton.
Buyer interest was attributed to the type, but also largely to the location.

“New Farm is a very sought after suburb, for all types of property,” Higgins said.

“It is located less than two kilometres from the CBD, and has a plethora of services and amenities, including a well-integrated public transport system with regular bus services and City Cat stops and a wide variety of bars, restaurants providing an array of dining and entertainment options."

The buyer mix was a range of investors and owner-occupiers.

“The building was for offered for sale in one line, or in individual components, and we had a variety of buyers looking at it, with a mixture of owner-occupiers and investors, with different ideas as to their plans for it,” he said.

“First of all, the residential market is well on the way to recovery, and with New Farm being such a sought after suburb, residential units in this suburb are always going to be a good investment,” he said.

“Secondly, in the current market many buyers are looking for properties with a ‘twist’ – that is, those that have some sort of upside, such as development potential, or the opportunity to increase the income stream for the investment."

Lancashire, who bought the property, intends to relocate his Ray White office to the ground floor retail space, and will rent out the six apartments on the floors above as investments.

The property also has the opportunity for further development, with scope for additional parking. Currently there are 13 car parks.

“We had a number of owner-occupiers including doctors, dentists and real estate agents looking at the property, and they particularly liked its exposure to Brunswick Street, as well as the car parking,” said Higgins.

“Yields are starting to sharpen for quality stock, but at the moment investors can still get in at an elevated rate, with current prime yields on average in the 8.5 to nine per cent range,” he said of commercial assets in the area.