North Lakes, QLD
Purpose of Purchase: Investment
Property Type: Commercial
- Net return in excess of 7%
- Primary focus is purely the cashflow of the property and then secondly that it would be easily re-let in the future if the tenants ever vacated
- Building is only 2 years old
- Tenant on a 7 year lease with 5 years still to run and 2 x 7 year options.
- Exposure to main thoroughfare road
- Tenant growth has been substantial over past 2 years
- Tenants pay ALL outgoings including taxes and body corporate
A Successful Investment:
Due to the clients budget, it was going to be difficult to get a National or A-grade tenant. The client was aware of this and was happy to consider properties with B-grade tenants. We managed to secure a property in a rapidly growing area of Brisbane in North Lakes with a tenant in place for 7 years. Due to the fact that the tenant is B-grade, we were able to secure the property with a NET return of 8.66%.
This is an excellent result and with the building only being 2 years old, there is excellent depreciation benefits for our clients as well. They are very happy with the result and are looking to purchase another 2 commercial properties in the next few years.