A high-net-worth individual has snapped up a sizeable commercial investment in the tightly-held Perth suburb of Osborne Park for $3.7 million.

Comprising a total building area of 1,380 square metres, 79 Hector Street West spans two titles, one of which was vacant at the time of the transaction. 

The other is occupied by national electrical group MM Electrical which recently inked a new long-term lease deal for the 640 square metre space, which represents 46 per cent of the site.

At a glance:

• A commercial property spanning two strata titles at 79 Hector Street West in the Perth suburb of Osborne Park has been sold off-market for $3.7 million.
• The sale price reflects a passing yield 2.89 per cent (due to other unit being vacant), however, the vacancy is expected to be highly sought after and upon leasing is expected to reflect an estimated fully leased yield of 6.2 per cent.
• The transaction was brokered by Alex Gismondi of Transact Capital.

Both the lease deal and the off-market sale of the property were brokered by Transact Capital's Alex Gismondi, who told WILLIAMS MEDIA the future upside for the asset was in the underlying land value for investors in the area.

"Properties very rarely transact in the prime Osborne Park corridor," he said.

79 Hector Street West. Source: Transact Capital

"I see a lot of the land in that corridor transforming into mixed-use, office, or high-density residential properties in the next 10-15 years.

"In the interim, however, there are a lot of retail and light industry users that are holding on to the precinct for as long as they can."

Earlier this year, Mr Gismondi sold a nearby property at 21 King Edward Road to a high-net-worth family for $11,750,000 which reflected a yield of 6.84 per cent.

Click here for more information about Transact Capital.

Similar to this:

Albany Highway service station and truck stop with development potential for sale through Transact Capital

Mair Property Funds completes $60 million diversified fund with West Perth asset