45 Grenfell Street Expected To Sell for More Than $40 Million
One of the most significant assets to be offered in Adelaide over the last year is expected to generate national and international interest as the city’s office employees drive a strong return-to-work movement.
The property at 45 Grenfell Street is in a prime location for professional occupants in the CBD with exceptional north-south access to the CBD’s retail and office hubs, transport and hospitality venues.
The building boasts 21 storeys with 12,206 sqm of office accommodation together with 406 sqm of ground floor retail space built over a centrally located 997 sqm allotment.
LJ Hooker Commercial Adelaide’s Mario Bonomi and Mark Tettis alongside JLL Adelaide’s Ben Parkinson and Tim Mutton have been appointed to sell the building on behalf of a local syndicate.
Co-Principal of LJ Hooker Commercial Adelaide Mr. Bonomi said the building was 70% leased and offers a passing net income of $2.29 million (fully leased net income $3.85 million) with a two-year WALE (by revenue).
He said the tower’s position in the CBD and the lack of new commercial stock in the market presented an opportunity to upgrade the property.
“Amid the economic headwinds, Adelaide remains a resilient market and gains continued attention from interstate and internally with the stamp duty for commercial transactions,” said Mr Bonomi.
“With the interest rate cycle nearing its expected peak, should see those investors on the side lines re-enter the market with more confidence, along with those looking for significant value add opportunities”.
JLL Head of Capital Markets Ben Parkinson said: “The building offers a prominent location in the heart of the Adelaide CBD’s core business precinct, and significant potential to reposition to create a long-term, high-quality investment”.
“The building presents a unique opportunity to significantly add value, with the uplift potential via tactical repositioning of the asset through innovative refurbishment and contemporary spec suite design,” he said.
Mr Parkinson said Adelaide has had the highest continued employee return-to-office rate of all CBD office markets in Australia over the COVID-19 period and buildings offering speculative office fit-outs are proving popular with tenants.
The building has undergone $3 million worth of renovations and upgrades, bringing it up to a 3.5-Star NABERS Energy Rating following considerable mechanical upgrades.
Additionally, the ground floor retail is now connected to the public realm and offers end-of-the-trip facilities and bicycle parking.
Mr. Tettis said a further attraction for investors is that no Stamp Duty is payable on commercial transactions in South Australia.
LJ Hooker Commercial Adelaide and JLL Adelaide are proud to present a 100% freehold interest in 45 Grenfell Street, Adelaide for sale by way of International Expression of Interest closing Thursday 5 October 2023 at 3:00 pm (ACST).
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