Mixed Use Investment | $2,750,000 | Net Yield: 6.71% | WA

This regional Western Australian mixed use investment presents an opportunity to secure a three-level commercial building in a main street position, a short walk from the coastal foreshore. Underpinned by established commercial tenancies, the property combines immediate income with an identifiable pathway to rental growth.

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The building comprises ground-floor and upper-level office accommodation, including a mezzanine level, and features an extensive rooftop solar installation. Its central location provides exposure to the surrounding retail, hospitality and foreshore precinct, supporting ongoing occupier demand.

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At a Rethink negotiated purchase price of $2,750,000, the investment delivers a 6.71% net yield on approximately $184,390 in annual net income. Accounting for estimated purchasing costs, the net yield equates to approximately 6.25%.

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Based on an assumed 65% loan-to-value ratio and 6.5% annual interest rate, the property is projected to generate approximately $68,203 in annual cash flow after mortgage interest expenses, representing a 5.86% cash-on-cash return. These figures reflect the acquisition modelling assumptions and are not guaranteed returns.

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A significant opportunity exists through the future market review of an existing commercial tenancy currently leased substantially below assessed market rental levels. The tenancy is estimated to be under-rented by approximately $55,000 net per annum, providing an identifiable pathway for future income growth.

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If the full rental uplift is achieved, annual net income could increase to approximately $239,390, representing an indicative net yield of 8.71% on the original purchase price, before any additional costs or changes to other income and expenses.

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Combined with a weighted average lease expiry of approximately 4.5 years, improved outgoings recoverability and a purchase price below estimated building replacement cost, the asset offers established income alongside opportunities for longer-term return enhancement.

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