A large 1338 sqm site housing a childcare centre and residence in West End has been sold for $3.8 million, attracting strong interest from investors eyeing its long-term redevelopment upside.
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The property at 86 Jane Street is currently occupied by Edge Early Learning childcare centre, which has a lease running until 2027 with a five-year option. It also contains a five-bedroom, two-bathroom residential dwelling.
Edge Early Learning at Jane Street is an educational facility that has 44 spaces and consists of three separate classrooms or learning environments. These three distinct areas are designated for different age groups: one for infants (Nursery), another for toddlers (Toddler room), and the third for preschool-aged children (Kindergarten room).
The site was purchased by Shally Family Trust after an expressions of interest campaign that generated 78 inquiries and multiple offers, despite initial price expectations over $4 million not being met.
Deepen Khagram of Remax Commercial, who brokered the deal on behalf of a syndicate of vendors, said the sizeable land holding in a prime riverside location was the major drawcard.
Mr Khagram said it was very difficult to find land of that size and location, situated just 2km from the CBD and 200m from the river. He noted that investor interest was outstanding for a tenanted investment on such a large landholding in the heart of West End.
Whilst currently bringing in annual net rental income of over $130,000, Mr Khagram noted the new owners would likely be attracted to the potential to redevelop the site in future given the rapid apartment development occurring in the suburb.
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The site previously changed hands in 2011 at a purchase price of $1.55 million, experiencing significant capital growth and increase in value over the last ten years, driven by the gentrification and urban renewal in West End.
Published 2-May-2024
