Beach House Balmoral Restaurant and Cafe site sells at auction for the first time in 15 years
The landmark corner property occupied by the iconic Beach House Cafe and Restaurant has sold under the hammer for $5.625 million.
It was the first time the prime property had come to market for the first time in 15 years. The much-loved restaurant and cafe has 11 years remaining on its lease.
The eatery at Shop 1, 2 Awaba St, Mosman, also has options extending until 2031.
CI Australia’s associate director Nick Lowry, and Shead Property’s Rick Sombroek and Bill Geroulis, took the 139sqm property to auction.
Mr Lowry said the site was one of only six privately owned shops at Balmoral, and was attracting international and local attention.
“Rarely do properties of this calibre, in such desired locations, come on the market,” he said. “In fact, it is the first time that a retail property has been offered for sale along The Esplanade in over five years.”
The property has a price guide of $4.5 million to $5 million. The selling agents received more than 300 inquiries from potential buyers in the lead-up to the auction.
Mr Lowry said an engaged crowd made for a competitive public auction.
A private investor was the successful purchaser, paying $5.625 million plus GST. This represents a 3.2 per cent net return, he said.
“The prominent location and long-term lease to this successful cafe and restaurant generated significant interest from local, interstate and international investors,” Mr Lowry said.
“Buyers are aware of the limited opportunities to acquire properties of this nature in Balmoral, let alone with beach views and on the corner of the sought-after Esplanade.”
The sale comes after “many unsolicited approaches from investors, tenants and operators” interested in acquiring or occupying the asset, according to the former owner of the asset.