Woollahra retail terrace sells well over reserve
A Woollahra retail terrace has sold under the hammer for $5.65 million, after hitting the market for the first time in 65 years.
The mixed-use commercial property at 138 Queen St sold for well over reserve to a private investor from Melbourne, with a 1.5 percent yield based on a net income of $84,687 per annum.
Currently leased to a pharmacy, the vendor who migrated from Turkey bought the property more than six decades ago.
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According to Ray White Commercial Sydney city fringe principal Kristian Morris, who marketed the property alongside Ray White Commercial Eastern suburbs principal Grant Whitman, the now 97-year old vendor set up a barber shop on the ground floor and raised his family on the second floor.
“The building is pretty small, its only 168sqm. This vendor raised his family and managed the commercial building whilst living in the residential area above it on the first floor,” Mr Morris said.
“This property sold considerably higher compared to the surrounding area. There was a high level of interest from other owners in the area, with an opportunity to renovate or fix the property and capitalise on the two tenancies.”
Speaking to the Daily Telegraph, Mr Morris said the auction received 12 registered bidders and eight active bidders.
The retail precinct that the property is held in is tightly held, meaning freehold properties rarely come up on the strip.
“Good properties supported by good fundamentals and location with a recession proof tenant are doing well.”
“There’s a lack of supply in blue-chip locations, but the market for quality retail properties across Sydney remains strong.”
The property is prominently located in the tightly held heart of Queen Street Shopping village, between Spicer & Holdsworth Streets.
High profile neighbours include Chargrill Charlies, Steve Costi’s Fish Market, Queen Street Deli, Pasta Pantry and a range of others.