Spring Hill strata office space sells for just under $1.4 million
A boutique office space positioned along the evolving Boundary Street in Brisbane’s Spring Hill, neighbouring the city’s CBD, has sold in an off-market deal.
14 November 2024
The split-level strata property at 12/541 Boundary Street was purchased by ERG Commercial, a private investor from Victoria for $1.39 million.
The deal was negotiated by Knight Frank agents Jacob Heinke and Christian Sandstrom on behalf of the vendor, a local private investor.
The Spring Hill commercial property has 199sq m of space, plus 8sq m of exclusive-use balcony space and three car parks.
It is fully leased to award-winning architect Vabasis who have been occupying the property for 9 years, with another four years remaining on their lease, plus options after that time.
The strata offering is within “Hill House”, which was built in 1990, situated opposite St Andrew’s Hospital and now neighbouring the recently completed Spring Hill Day Hospital.
Mr Heinke said Boundary Street in Spring Hill was rapidly evolving into a healthcare and commercial hub.
“This transformation is giving it greater appeal to investors, who can see the growth potential in the future,” he said.
“The buyer of this property was drawn not only to the office’s location in an evolving precinct so close to the Brisbane CBD, but the attractive returns on offer.
“With a net income of $93,575, the property was sold on a net yield of 6.73%, providing the incoming purchaser immediate positive cash flow.”
Mr Heinke said the team at Knight Frank collaborated with the vendor to create a targeted off-market campaign to sell the property.
“This strategic approach effectively captured the attention of active privates and recent underbidders to secure a successful result for the client,” he said.
“We were able to use our expertise in matching opportunities with the right buyer, which ultimately contributed to a successful sale and optimal result for the vendor.
“Recent activity in the city fringe has rejuvenated investor interest. With benchmark transactions now established, we expect improved vendor sentiment and an increase in transactions.”
For more information contact Jacob Heinke and Christian Sandstrom
