Sale’s former Crown Hotel to go under the hammer
One of Sale’s most well-located buildings has come to market with a thriving tenant in tow.
The former Crown Hotel in Sale will be auctioned this month after undergoing a significant refurbishment just two years ago before becoming home to major pet retailer Pets Domain.
The property at 317-325 Raymond Street occupies what could be considered the best location in the regional city, with frontage to Sale’s thriving main street and also to a council-owned car park it shares with Bunnings and the Woolworths, Coles and Target-anchored Gippsland Shopping Centre.
Leased predominantly to Pets Domain – a proven operator with 35 locations across Australia – until 2023 and with options to 2043, it is also partially leased to Direct Appliance Rentals. The building returns $130,538.08 per annum plus GST.
It will be put on the block at Burgess Rawson’s Investment Portfolio Auction on October 28.
Burgess Rawson director Shaun Venables, who is marketing the property with Raoul Holderhead, Beau Coulter and Graham Chalmer’s Chris Morrison, said the asset could not be better positioned.
“With Bunnings, the supermarkets and other surrounding businesses it’s really in good company and gets enormous exposure and convenient parking just from that location,” Mr Venables said.
Price expectations for the property are around $1.85 million, which would represent a 7% yield.
“For investors looking for something at that price point, it’s a lot of building for the money. The location, without question, is irreplaceable and underpins its future,” Mr Venables.
The auction comes amid a surge in interest in regional commercial property during the COVID-19 pandemic, as investors seek safe opportunities outside of capital cities.
“These isolated commercial centres, with a good draw in terms of population, haven’t been affected by the pandemic like the metropolitan areas” Mr Venables said.
“More than ever it makes a lot of sense to consider a strong regional centre such as Sale, which is supported numerous industries including agriculture, oil and defence, and has very little – if any – vacancy around that Raymond Street area.”
No. 317-325 Raymond Street occupies an 737sqm Commercial 1 Zoned site with 890sqm of floorspace, including 250sqm on the upper level, and benefits from an extensive triple street frontage.
Burgess Rawson’s Investment Portfolio Auction will be held at 11am AEDT on Wednesday, October 28.