A commercial building on an arterial thoroughfare in Brisbane’s inner north has sold for just shy of $3 million in an off-market deal, demonstrating the strong demand for freestanding value-add assets in the city’s fringe.

The property at 185 Kelvin Grove Road in Kelvin Grove consists of an 832sq m building on a 486sq m site, with onsite 10 car parks at the rear of the site fronting School Road.

The building, which has a net lettable area of 510sq m, is 100% occupied by Wilson Ross Accountants, with a WALE of 1.95 years.

The asset was sold following an off-market sales campaign run by Jacob Heinke and Hayden Ryan of Knight Frank, acting on behalf of the vendor, JWONG GLOBAL 2022 PTY LTD.

It was purchased for $2.8 million by a private investor, reflecting a yield of 6.3%.

Mr Heinke said 185 Kelvin Grove Road was a versatile freestanding property which was suitable for a multitude of purposes including commercial office, consulting or retail space.

“The opportunity is ideal for both investors and owner-occupiers, offering strong holding income and potential for future value addition through upcoming lease expirations and ground floor basement refurbishment.

“Recent activity in the city fringe has invigorated investor interest. With benchmark transactions now established, we expect improved vendor sentiment and an increase in transactions.

“The sub-$3 million market is highly popular as many investors find residential returns less attractive. Consequently, many new investors are turning to commercial properties to enhance their returns.”

Mr Ryan said there was strong buyer demand for value-add opportunities in Brisbane’s city fringe.

“Our carefully executed off-market campaign yielded strong interest from a small group of purchasers who are actively seeking opportunities in Brisbane, leading to an optimal result for the vendor.

“Buyers were attracted to the asset due to its holding income, future value-add potential and its location in a prominent position on a main road in Brisbane’s inner city.

“We have buyers on our database now who missed out on this property but are continuing to look for similar opportunities.”

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