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Project Location Newcastle NSW
Project TypePositive Cashflow Commercial Investment
Advertised PriceOff-market Purchase
Cap rate valuation - $1,070,000+
Purchase Price$1,020,000
Discount Achieved$50,000+
Gross Annual Rental Return10.5%
Sale TypeOff-market negotiation
Terms of purchase - Subject to satisfactory pest & building inspection
- Subject to review of shop leases, income and expenditure
- 5% deposit
- 60-day settlement
Market Research Conducted- Vendor motivations
- Detailed leasing review
- Discussions with tenants re history and desire to remain in village
- Review of value add-opportunities
- Review of essential maintenance requirements and costs
- Suburb performance – review of historical and recent charts to confirm consistent growth in land values
- Projected sale value – post value-add
Property Attributes- Located in ‘owner-occupier’ suburb
- Strong income stream allowing 7.5% net holding returns to investors
- Fully tenanted
- Significant opportunities to add value to the property through physical improvements and new leasing
Value Growth Strategy1. Conduct detailed market research
2. Negotiate and buy below market value – insert tick
3. Work with tenants to add value and update leases
4. Utilise inputs from consultant team to finalise improvement works
5. Project manage improvement works including external landscaping, façade and signage facelift to improve appeal
6. Benefit from positive cashflow
Our teamInvestors x 3
Building Inspector
Solicitor
Commercial Finance Broker
Architectural Draftsman
Branding & Marketing Specialist
Engineer
Town Planner
Certifier
Licensed builder
Key sub-trades
Project Status Design
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