A LOCAL developer has purchased a long-standing childcare centre with future development potential prior to auction for $3,500,000 at 139 Holt Avenue in Cremorne.
The asset, that came with a 230sq m* building area on 445sq m* of land, was positioned just metres from the intersection of Military Road and Holt Avenue and offered a rare opportunity.
The property was marketed and sold by Ray White Commercial Sydney North Director Scott Stephens and Ray White Lower North Shore Director of Projects and Developments Tim Abott.
“The asset is leased by CYC Group Pty Ltd trading as Little Sprouts Early Education Cremorne who have been successfully trading from the property since 2012,” Mr Stephens said.
“We originally had the property booked to go to auction, but such was the interest, it was sold after being online for just two weeks – a testament to the opportunity that was available.
“We utilised our local database and in just two weeks we had received 70 enquiries and issued 13 contracts, with the final sale price reflecting a 2.67 per cent yield.
“The tenant has undertaken an extensive custom fit-out of the premises and the current gross income is $116,524.85 per annum plus GST.
“The initial lease commencement was 1 October 2012 with the tenant now part-way through the second five-year lease term with one further five-year option.
“The sale also reflects the strength of the investment market on Sydney’s lower north shore.”