17/06/2011- Post-auction snap up
A two-level office building in the sought-after Chermside Shopping Centre precinct has been snapped up for $1.4 million post auction.
A private investor beat other post-auction offers for the two-level building at 10 Hall St, Chermside, only 200m from the shopping centre.
Raine & Horne Commercial’s Trent Bruce, who negotiated the deal with Hudson Dale, said the auction attracted five registered bidders.
‘It was passed in at $1.25 million when bidding paused,’ Mr Bruce said. ‘After substantial further negotiations and three further offers, the property was sold for $1.4 million to a private investor.’
The building was extensively added to and refurbished in 2006. It was a vacant possession and had a net lettable area of 309sqm. It was on a 685sqm block with MP2 zoning and parking for at least 10 vehicles.
Mr Bruce said the sale equated to a rate of $4530/sqm based on the building or $2040/sqm on the land.
He said the property was recently leased at an annual rate of $95,000 on a three-year term with a three year option. ‘It’s a long-term redevelopment but in the interim it’s a buy-and-hold scenario,’ he said.
Mr Dale said that with amalgamation of sites around 10 Hall St, there was the potential for future developments of up to 15 storeys.
He said property near the shopping centre was particularly sought after. ‘With Chermside being earmarked as the city of the future, people want their businesses up there because it’s the hot spot,’ he said.