Clayton Retail Investment Sold at Auction
A retail investment opportunity with redevelopment potential (STCA) which was offered to the market for the first time in 50 years has been sold at auction by Ray White Commercial Oakleigh on a tight yield for $911,000.
The tenanted property at 1919 Dandenong Rd, Clayton, was sold to a local investor by Paul Rizzo of Ray White Commercial Oakleigh on behalf of a local businessman for a yield of 2.91 per cent.
Paul Rizzo said there was a strong response during the marketing campaign for the corner investment opportunity, which is on a land area of approximately 209 sqm and offers a retail area of approximately 54 sqm.
“The on-site auction attracted a large crowd and we had up eight bidders competing for the property,” he said.
“There was some very keen bidding up until we sold under the hammer for $911,000, a price which was well above the vendor’s reserve.”
Paul Rizzo said the tenant had recently signed a new three year lease with two three year options.
“The property is currently returning rental income of $26,600 per annum plus GST and outgoings,” he said.
“There is future value and development upside (STCA) from this property which is zoned Commercial 1 and has parking at the rear.”