A prominent fully-leased two-storey commercial building in the heart of Brisbane’s blue-chip suburb of Paddington has sold in an off-market deal.

The property at 179 Given Terrace was purchased by Sarri Property Investments for $4.25 million in a deal negotiated by Knight Frank agents Hayden Ryan and Jacob Heinke on behalf of the long-term vendor who initially developed the property. 

The asset offers 575sq m of net lettable area over two levels on an 817 sqm corner site, with 22 undercover car parks. 

Currently fully leased to four quality tenants in Stowe Electrical, Paddington Physiotherapy, Grace Simpkins Personal Tutors and Ray White Paddington, the property was sold on a passing yield of 4.82% and a building rate of $7,391/sq m. 

Mr Ryan said the transaction highlights the ongoing demand for quality commercial investment opportunities in blue-chip locations, particularly in the sub-$10 million price point.

“Rarely do quality investment opportunities become available in such a tightly held commercial market like Paddington, and when this opportunity presented itself off-market, we immediately knew who the strongest buyers would be,” he said.

“The demand in this price point continues to grow, and with the lack of quality stock on the market, investors are willing to pay to secure the right asset.

“There is some short-term rental reversion that the purchasers were able to access fairly quickly, so this along with the unmatched location really made it an opportunity too good to pass up.

“We have a growing database of buyers looking for similar assets, so we were able to quickly introduce the right buyer in an off-market deal that our client was very happy with.”

Mr Heinke said being underpinned by longstanding tenants, great car parking and positioned on one of Brisbane’s most prized retail strips, this mixed-use asset was in heavy competition between several groups.

“We had been working with Sarri Investments for several few weeks to find a quality asset suitable for refurbishment and rental reversions. When we presented 179 Given Terrace, it was a perfect fit,” he said.

“Positioned within walking distance to Brisbane’s CBD, Suncorp Stadium, The Paddo hotel, The Barracks and Brisbane’s prized Caxton Street, 179 Given Terrace is surrounded by popular amenity, ensuring its location will always be relevant.

“Quality inner-city investments such as this are particularly popular among avid private investors. As vendor and purchaser expectations continue to align, transactions at this level will continue to perform well.”