Burgess Rawson together with Colliers is excited to market and sell 602 Whitehorse Road Mitcham, a two level meticulously maintained retail/office building anchored by Fernwood Gym on a new 11 year lease.
Investor appetite for metro office buildings is at an all‐time high and this prime location in sought after Whitehorse Road will be certain to draw strong investor attention.
This superb parcel of 2,480sqm of Commercial 1 land is in the heart of Mitcham and provides a myriad of options for redevelopment. The vast 61 metre frontage provides exposure to over 39,000 vehicles passing daily.
In addition to Fernwood, the current design of the building is configured for 12 office suites on the eastern side, most with direct access from Whitehorse Road.
The property is subdivided and provides ample parking with 71 basement car parking spaces. Burgess Rawson Retail Investment Sales Specialist, Rick Silberman, said he anticipates the property will attract significant investor interest ahead of its sale next month.
“Office Assets are in high demand, our buyers are consistently seeking assets of this nature which are seldom available. A well‐positioned income producing office investment that provides phenomenal upside with zoning that allows for future mixed‐use development of up to 5 levels (STCA)” said Mr Silberman.
“This large rectangular site is in the heart of Mitcham and is being offered for the first time in 30 years, the ample parking and separate titles with Commercial 1 zoning make this property one of a kind. Situated just metres from Mitcham Shopping Strip, and the Golden Mile of Large Format Retail the property is ideal for tenants, many of whom have been in occupation for over 20 years. The large lettable area of 4,272 sqm lends itself to many future alternative uses.”
The tenancy mix is a range of food, gym, government, accounting, health and legal with many tenants with tenure in excess of 20 years.
Providing a return of $917,395 this represents an average of a low $214 psm. The tenancy mix, expiry profile and zoning provides flexibility and an opportunity for a savvy investor to obtain future upside.
As the major tenant, Fernwood Fitness has continued their tenure and renewed on an 11 year lease from July 2017, the tenant pays all usual outgoings and annual increases of 3.5%. Fernwood has recently completed a major internal upgrade.
This property is being sold by Expression of Interest, closing at 4pm (AEST) on Thursday 17 May 2018.
View the property here.
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