The arrival of property to the market, provides a seldom available opportunity for investors to acquire a fully leased asset, located within arguably one of Western Australia’s premier and highly sought after commercial/industrial precincts, of Osborne Park.
INVESTMENT HIGHLIGHTS:
– Strata Area: 1505m2*
– Building Area : 1225m2*
– Twenty (20) car bays on title^
– Prominent and extensive street frontage of 28metres*, to major thoroughfare in Hector Street
– Presentable & versatile improvements comprising showroom/office and predominately clear span warehouse
– Fully leased to predominately long-term occupier
– Secure income stream with programmed rent reviews
– Excellent connectivity and proximity to major transport networks
– Extremely tightly held and highly sought-after precinct
– Ideal superfund asset
DESCRIPTION:
A strata lot comprising a two-level, street fronting showroom/office and attaching warehouse, with exclusive use of nineteen (19) car bays
Showroom/Office: 375m²*
Warehouse: 850m²*
Parking: 280m²*^
Total Strata Lot Area: 1,505m²*
PROPERTY:
Lot 1 has a 28.6 metre* frontage, rectangular in shape and set back and elevated from street front, with level contour thereafter.
The site supports a showroom/office and warehouse combination, with the showroom/office component constructed over two levels. Whilst the building’s presentation is reflective of the era of construction, the building has been superbly maintained, with an appealing street facade and functional floorplates, allowing for a variety of potential future uses and fit out. The façade and boundary walls of the building have been constructed in rendered brick elevations, with the façade incorporating extensive glazing. The building has concrete flooring and a metal deck roof.
More specifically, the showroom component occupies the ground floor of the building with an area of 190m²*. The upper floor comprises five (5) full height glazed offices, a boardroom and open plan work area. The ground and upper floor benefit from superb natural light filtration and have reverse cycle ducted air-conditioning and generous ceiling heights.
Amenities, including toilets and kitchen facilities are afforded to both lower and upper level of the building, with separate toilets and shower facilities within the warehouse component.
The attaching warehouse of circa 850m²*, can be directly accessed from the showroom, in addition to having a separate entrance from the adjacent carriage way. The warehouse has a generous truss height spanning to in excess of 6m* and has a predominately clear span floor plate, allowing for flexibility and functionality. There are two electric roller doors each circa 3.8 metres wide by 4.8 metres wide fronting the wide carriageway. In addition, the warehousing has evaporative air-conditioning throughout and a non-approved mezzanine area of circa 200m²* The warehouse’s configuration with twin amenities and access allows for future flexible leasing options.
The adjacent carriage way, which is owned by owners of the complex, for the benefit of each owner, provides access to the warehouse and exclusive tenancy parking, directly off Hector Street West and is ideal for container drop off and pickup.
LOCATION:
The property is located within the prime core industrial/ commercial district of Osborne Park, approximately 7 kilometres northwest of the Perth Central Business District. More specifically, the property is located on the southern side of Hector Street West, 140 metres*east of its intersection with King Edward Road.
Further benefit is derived from the property’s proximity and excellent connectivity to major transport arteries including Mitchell Freeway, Hutton Street, King Edward Road and Scarborough Beach Road.
ZONING:
The City of Stirling advises that the property is currently zoned ” Industry ” under the Local Planning Scheme No. 3. Proponents must make their own enquiries with relevant authorities as to permitted uses and zoning confirmation.
SERVICES:
Services available to the property include, scheme water, electricity and NBN with the property utilising a septic tank waste system.
OUTGOINGS (FY 22/23):
Council Rates: $9,852.25* p.a.
Land Tax:$5,691.90* p.a. (based on single ownership rating)
Water Corporation Rates:$730.98* p.a.
Strata Levies: $11,836.00* p.a. (includes Administration Fund and Reserve Fund paid quarterly @ $2,959 p.a. (as at 1st November 2022)
The above outgoings are payable by the Tenants (excluding upper-level office Tenant, during initial term only) in addition to Tenant specific outgoings
TENANCY DETAILS:
Unit 1 is currently leased by two (2) tenants, one of which, has been in occupation for in excess of eighteen (18) years.
Ground Floor Showroom, Part Upper-Level Office and Warehouse (1,035m²*):
– Current lease term expiring on 31st January 2024 with a further five (5) year option commencing on 1st February 2024
– Current Passing Net Rental of $104,500 p.a. (as at 1st November 2022) with Tenant paying all Statutory and Variable Outgoings in addition
– Reviews: Market Review capped at 20% increase on 1st February 2023 and alternating Market (no decrease provision) and CPI reviews during the Option Period.
Upper-Level Office:
– Current lease term expiring 24th March 2024 with a further option of three (3) years commencing on 25th March 2024.
– Current Passing Gross Rental of $21,000 p.a.
– Reviews: Gross Rental to increase to $23,000 p.a. on 25th March 2023. If option is exercised, rental reverts to a Net Rental plus Outgoings on 25th March 2024, which is to be reviewed to market with 3% increases annually thereafter.
As at 1st November 2022, Net Passing Rental is $104,500 pa in addition to $21,000pa of Gross Passing Rental ( for Upper Level)
Further Lease information and copies of Lease documentation will be provided upon request, to qualified.
For further information and/or to arrange an inspection, please contact Franco Gangemi.
*Approximately
^ The Unit is afforded 20 car bays; however, 1 car bay has been relinquished to make way for an electrical transformer located on the first car bay along the western carriageway boundary
