Tenanted Investment Sold at Auction for $1,704,000
An investment opportunity with one of Australia’s largest tyre outlets as a tenant at Chadstone in Melbourne’s south-east has been sold at auction by Ray White Commercial for $1,704,000.
The property at 1356 Dandenong Road, Chadstone, was sold under the hammer to a private investor by Ray White Commercial Oakleigh’s Ryan Amler on behalf of a private owner for a yield of 4.2 per cent.
Ryan Amler said the approximately 440 sqm building on an approximately 540 sqm land area is leased to Goodyear & Dunlop Tyres (Aust) Pty Ltd, trading as Beaurepaires Chadstone.
“The marketing campaign attracted 130 enquiries and we had six bidders at the on-site auction,” he said.
“This property was offered sale for the first time in 28 years and is a prime retail investment in arguably one of the most prominent and high exposure positions on Dandenong Rd with approximately 29,000 passing vehicles per day.
“The high profile national tenant commenced a five-year lease with three five year options in September, 2015. The property generates net rental income of approximately $72,100 per annum and there are fixed 3.0 per cent annual increases and market reviews at commencement of further terms.”
Ryan Amler said the property is zoned MUZ and enjoys high exposure with two street frontage.
“There is future development upside subject to council approval,” he said.