Trendy Darlinghurst Office Attracts Private Investors
A trendy Darlinghurst office building has been acquired by Marks Henderson for $92.75m.
The fully leased converted warehouse at 19A Boundary Street is home to 53 separate businesses including celebrity chef Donna Hay and creative agency Collider. The majority of leases provide for 5% fixed annual reviews and generate approximately $4.4m pa, providing a 4.7% yield on the purchase price.
The building offers 6,480sq m of NLA together with 51 car spaces and a ground floor retail showroom. The potential to strata the building or to amalgamate a range of smaller inefficient tenancies offers the purchaser a range of alternative investment strategies.
The property was sold by Haben Property Group who had purchased the property for $63.5 million in 2017.
Marks Henderson was formed in 2004 by Chris Marks and John Henderson who had previously been Directors at JLL. The group tend to focus on CBD fringe areas and over the past 18 months have acquired 88 Cumberland Street, The Rocks, 29 Balfour Street, Chippendale and 19 Forster Street Surry Hills.
The Darlinghurst property was offered for sale by Mercer Property and CBRE.