A three-storey office building at 123 Gotha Street in Fortitude Valley has been sold to a local investor for an impressive $9.725 million.
Situated on a 902-square-metre inner-city site, the fully leased property has a net lettable area of 1,638 square metres and offers 23 secure car parking spaces. It is currently the headquarters of Torrens University Australia.
Despite the challenging environment created by the COVID-19 pandemic and fluctuating interest rates, the property has remained a steady source of income for its investors.
Cal Doggett, Managing Director of Properties & Pathways, expressed satisfaction with the sale. Acknowledging the bittersweet nature of parting with such a prime location in a developing area, Doggett emphasised that the decision was driven by the company’s commitment to putting investors’ interests first and exploring new investment opportunities.
One of the most attractive aspects of this property is its corner location. With a generous 30.4-metre frontage on Gotha Street and 27.2 metres on Agnes Street, the building has enormous potential for future development. Its location in “Brisbane’s fastest growing inner-city office market” made it an even more attractive investment opportunity.
Knight Frank’s Barker emphasised the value of this established asset and the opportunities it offers for repositioning and development. In addition to the building’s secure cash flow and high-quality covenant, the prospect of implementing a re-leasing initiative in line with the burgeoning occupier market in Fortitude Valley added significant value.
Generating a net income of $905,116 per annum with fixed reviews of 3.5%, the property’s impressive Weighted Average Lease Expiry (WALE) of 1.86 years by income is testament to its stability. Barker highlighted the potential to accommodate multiple tenancies, capitalising on the area’s popularity with occupiers. Accessible transport links and a wealth of amenities further enhance its appeal.
Fortitude Valley’s continuous transformation, fueled by both public and private investments, adds allure to this property’s location. Renowned for its world-class shopping, exquisite dining options, stunning architecture and excellent transport infrastructure, the suburb has undergone a remarkable urban rejuvenation, cementing its status as a premier destination.
The sale at 123 Gotha Street is well timed to coincide with ongoing and future development projects in Fortitude Valley. These include the Valley Heart Precinct, Fortitude Valley Metro, Cross River Rail, Brisbane Metro, Brisbane Live, Waterfront Brisbane, Queens Wharf and the highly anticipated Brisbane 2032 Summer Olympics. The property is poised to reap the benefits of the area’s growth and the exciting prospects these projects bring.
Published 17 June 2023
