Investor spends $1m on Lismore CBD property
AN INVESTOR from Sydney beat four other interested buyers to snap up a million dollar Northern Rivers CBD property last week.
Colliers International investment services executive Daniel Cullinane said a tenanted property at 100-104 Woodlark St, Lismore, sold for $1,050,000.
He said the sale which attracted interest from around 100 potential buyers "is a wonderful thing for the local property owners in Lismore".
"We had the property up for auction where it was passed in at $950,000," he said.
"This resulted in five interstate investors left standing in a battle to secure the property and after a negotiation process that lasted over a week, an unconditional offer was made at a price of $1,050,000 representing a passing yield of 7.3 per cent."
Mr Cullinane said the property will provide the new investor with a net return of $77,022 per annum, with the Bank of Queensland in a lease until 2021 and LaFaro Accountants and Advisors locked in until 2023.
"The sale showed approximately $2270 per square metre of lettable area and approximately $1405 per square metre of site area providing a very attractive transactional precedent for future investments in the region," he said.
"Lismore has done it tough over the last few years and to see such strong interest in this asset is very positive for the region.
"I spoke to several property owners in the CBD throughout the campaign and there was genuine uncertainty about where capital values sit due to a lack of transactional evidence in recent years, (but) the current yield compression in the southern capitals has allowed our regional clients to realise significant capital gains."
He said council rates for the property, zoned B3 Commercial Core, were $21,744.26 per annum, water rates $240, and outgoings $28,061 plus GST.
"There are many cashed up investors, looking for similar properties for their next acquisition," he said.