Commercial Collective have achieved a significant off-market sale for the city with the circa $35.3 million exchange of 51-55 and 61 Bolton Street, home to the Newcastle Family Law Courts.
The sale to Sydney-based fund manager Marprop was negotiated on behalf of Eagle Property Group.
Commercial Collective's Matt Kearney said the sale highlighted the changing face of Newcastle and the attractive yields outside of metropolitan Sydney.
"[Marprop] made an unsolicited offer, which was considered by the present owners and then they proceeded on that basis," Mr Kearney said. "The net income was just short of $2.3 million now and the yield was 6.5 per cent.
"They hold assets in other metro and regional areas and they were looking for a robust, income-producing asset that had strong government income and income not affected by COVID.
"In this particular building, 94 per cent of the income came from either the government, New York Stock Exchange or Toronto Stock Exchange companies that weren't subject to COVID rent relief, so they saw there were very resilient income streams.
"They enjoyed the yield was better than six per cent and they think that Newcastle has incredible potential."
FOR LEASE
Raine & Horne Commercial's Steven Dick and Paul Tilden have been engaged to find a tenant for a warehouse with a powder coating line at 16-18 Laverick Avenue in Tomago. Set on two parcels of level industrial land, the property has air-conditioned offices, a five-tonne overhead crane and ample 3-phase power. It is for lease for $100,000 per annum plus outgoings and GST.
"For a business that powder coats their product this could be the perfect opportunity to do it all in-house," Mr Dick said.
