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Morningside Office/Warehouse Sells for $975,000

BySusan Yarrow

AN investor has snapped up an office/warehouse/freezer in the Brisbane suburb of Morningside for $975,000 following a successful expressions of interest campaign at 7/109 Riverside Place.
The asset, that came with a 280sq m* building area and included a 70sq m* freezer, was sold for $300,000 more than its sale price just a year ago.
The property was marketed and sold by Ray White Commercial TradeCoast Industrial Sales and Leasing Executive Jack Gwyn and Sales and Leasing Manager Jared Doyle.
Mr Gwyn said the duo catered to the vendor’s selling needs with a personalized approach that saw a number of different selling tactics used.
“We were originally instructed to sell the property off-market and through that we generated 10 serious enquiries, resulting in two offers,” he said.
“Although these two offers were significantly higher than what the vendor purchased the property for, we advised him it was in his best interests to create competition and run a formal campaign, in order to get the best price.
“As soon as we put the property online we had a high level of interest, hosting many inspections, however there was no urgency from the buyers.
“We suggested the use of an expressions of interest campaign with no price, and us combining this with a fixed closing date, gave us the opportunity to generate offers and give our vendor the time to mull over them.
“During the process, we dealt with over 32 prospective buyers and generated four offers for the vendor to choose from, whilst providing valuable market feedback so he could make the best-informed decision.

“The buyer knew it was $300,000 over the 2018 sale price, but knew the value of the significant infrastructure in the building was overlooked in the previous sale.”
Mr Doyle said the property was originally developed in 2004, with Grove Juice working with the developer to have a freezer designed/engineered into the original building, off the plan.
“Grove Juice out-grew the facility before moving to a larger building in Mansfield. Once Grove moved out, the original owner stored vehicles in there before selling it to the vendor in May 2018,” he said.
“The vendor first contacted us asking questions about unit five, and mentioned that he had unit seven under contract, which he was going to move his building business into.
“From conversations, we discovered the in-demand freezer installation and knew of a client who was looking for exactly that facility.
“After discussions, we secured a deal with HRVST ST PTY LTD for a substantial 5+5+5-year lease that started in July 2018, worth $72,000 p.a. + outgoings + GST.
“A year later, and we were able to secure a fantastic sale price for the vendor.”

*Approximately.

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