Double fast food joint among NSW’s top listings
Retail might be dominating the public discussion as the coronavirus epidemic rolls on, but in New South Wales it’s also the asset class on investors’ lips.
Four of the top five weekly listings on Realcommercial in NSW were retail properties, proving that there’s still be life in the market for strongly tenanted properties in good locations.
Here are the properties that caught your eyes over the past week.
PRIME REGIONAL SERVO
The strongest demand for service stations is generally reserved for those in metropolitan areas.
But so hot is the asset class that a Metro Petroleum site (above) at Orange in regional NSW was top of the pops among the state’s commercial property listings on Realcommercial.
The 1578sqm site sits in an ideal Midland Highway location at the entrance to the Orange CBD, has a secure 10-year net lease and currently returns $227,700 annually, with yearly 3.5% rent increases.
Interested buyers had better act quickly – its expressions of interest campaign is set to close on Thursday, April 2, unless sold prior.
“SYDNEY’S NEWEST SERVO”
Touted as the freshest service station in Sydney, the Caltex at Edmondson Park also benefits from being in the city’s fastest growing area.
The property in Sydney’s outer south-west already has an estimated 55,000 cars passing daily, along with a 10-year lease directly to Caltex plus 15 years of options.
And with Caltex paying all outgoings, including management fees, along with $425,000 in annual rent, it’s a big-earning long-term investment.
Again, interested buyers will need to jump quickly, with the property’s ‘for sale’ date brought forward to Monday, March 30.
ART STUDIO A BLANK CANVAS
Ranking in NSW’s top five properties for the third week running, this Summer Hill warehouse space presents as a blank canvas for a potential new operator, developer or investor.
Previously used as a creative art studio, the property suits any number of uses, with its flexible B6 zoning giving the potential for more levels to be added on the 300sqm site.
REA Group chief economist Nerida Conisbee says it’s the property’s development potential, as well as its prime location in Sydney’s inner west, that gives it significant appeal.
“I can see why this one would attract a lot of interest,” she says.
“It’s in a desirable and highly developed suburb and with those planning allowances it makes it quite appealing. Plus the space itself is quite attractive.”
INVESTORS BITE AT KFC
It might already be under contract, but that hasn’t quelled interest in the KFC outlet at Dulwich Hill in the city’s south-west.
The property, which has been a KFC for more than 40 years, has generated enormous interest for almost two months but now appears to have found a buyer.
With a coveted 10-year ground lease and fast food assets a rarity on the market this year, the modern store had appeal on many fronts and was certain to be snapped up.
A FAST FOOD DUO
If you’ve been looking for the right fast food property investment, why not grab two in one hit?
This thriving property in regional Cessnock, west of Newcastle, has long leases to both chicken chain Oporto and Mexican outlet Zambrero and occupies a prime position opposite McDonald’s on a busy main road.
Returning more than $307,000 per annum, the property was originally slated for auction next month, but with auctions cancelled its date has been brought forward, with an expressions of interest campaign now closing at 3pm on Monday, March 30.