A historic mixed-use building in the heart of Newtown has sold under the hammer for $13 million with a yield of 3.4 per cent.
Built in the late 1800s to early 1900s, the 724sqm mixed-use trophy building at 287-291 King Street, comprises two retail shops, office consulting rooms, and nine apartments.
With a stable income from a mix of tenants, anchored by a healthfood supermarket, the property attracted keen interest from investors with 89 enquiries prior to auction and 25 private inspections.
With six registered bidders on the day, competition was fierce throughout the auction, with 86 bids in total, starting at $10 million.
The building was purchased by a local investor.
Ray White Commercial Western Sydney director Peter Vines said the mix of tenants as well as the great location were what drove interest in the property.
“The building offered numerous income streams which gives people coverage if one of the tenants moves out,” Mr Vines said.
“Also Newtown as a location, and this one in particular so close to the station, is a booming thriving retail spot.
“There’s so much around here — it’s near Sydney uni, Royal Prince Alfred hospital, and five minutes to the airport — it’s an unbelievable location.”
Ray White Commercial Sydney director Joseph Assaf said the vendors were over the moon with the price they received.
“It was a very sentimental property to them and was owned by their late father,” Mr Assaf said.
“They were very happy with the process and result.”