A retail strip in the Adelaide’s outer north attracted in excess of 130 enquiries before selling under the hammer for $3.155m through managing and selling agents, LJ Hooker Commercial Adelaide.
Multiple active bidders pushed the auction result well above reserve with the sale price reflecting a passing yield of 4.64% for the multi-tenanted asset on high-traffic Main North Road in Pooraka.
The retail strip, set on a 1,908 sqm allotment, offers underlying development upside but the immediate term offers security of tenants through healthy 4.7-year WALE.
LJ Hooker Commercial Adelaide’s Rino Pancione and Mark Tettis managed the auction campaign for the private owners.
“There hasn’t been a lot of retail assets come to market in Adelaide over the last 12 months,” said Mr Pancione.
“The Main North Road asset ticked a lot of boxes for investors – good tenant security, exposure to more than 30,000 vehicles a day and future development potential.”
The sale, which was to another private investor with local and interstate interests, reflected a rate of $5,403 p/sqm over the building and $1,654 p/sqm across the land.
Mr Tettis said the strip was well patronised by the surrounding catchment with the existing tenant mix including Australia Post, a Star Discount Pharmacy, Pooraka Medical Clinic and a Vietnamese restaurant.
“The sub $5m price point remains resilient, to which the auction process has been delivering solid results for our vendors, with high interest levels and competitive bidding,” said Mr Tettis.
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