 Asset Class: | Office |
 Price: | $ 2232543 |
 Net Yield: | 5.00 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<p>Presenting an exceptional investment opportunity at 1/101 Francis Street, Northbridge - a well-positioned 84sqm ground floor office tenancy with a fresh 3-year lease generating a strong 6.25% Triple Net yield at $479,000.</p> <p>Built in 2009, this contemporary office space offers excellent depreciation benefits and comprises 13 units in total, with this being the only ground floor tenancy in the complex. The property presents in immaculate condition with a fresh tenant having just commenced occupation in November 2023.</p> <p>The strategic layout features two double entrance doors, making it exceptionally versatile with potential for conversion into two separate smaller tenancies (30sqm & 50sqm) without altering the external appearance - creating an attractive value-add opportunity that could command higher sqm rates between $300-350/sqm.</p> <p>The property comes with two secure undercover car bays - a valuable asset in this central location. Additional benefits include generous street parking and the CPP Aberdeen Car Park directly opposite, offering 24-hour access with 6pm-6am rates at just $13/day.</p> <p>For investors seeking peace of mind, the tenant covers all outgoings including management under the Triple Net lease structure. The seller has structured an attractive deal with a cash contribution of $5,800 prior to settlement to cover the shortfall of the year 1 incentive, ensuring the advertised 6.25% yield is achieved from day one.</p> <p>Located in vibrant Northbridge with its excellent entertainment and culinary scenes, the property benefits from exceptional connectivity to Perth's CBD, Perth Train Station, the new ECU City Campus, Perth Arena, and Perth Museum and Cultural Centre. The surrounding area continues to show strong population growth, creating sustained demand in a tightening market.</p>
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<p>Northbridge stands as one of Perth's most dynamic and vibrant precincts, celebrated for its rich cultural diversity and urban energy. Located immediately north of Perth's CBD, this bustling district offers exceptional connectivity to key city landmarks and transportation networks.</p> <p>The area has experienced <strong>consistent population growth</strong>, with the latest figures showing a 2.91% increase to 3,365 residents as of June 2022, outpacing the City of Perth's overall growth rate of 2.74%. This upward trajectory creates sustainable demand for commercial services.</p> <p>Renowned for its <strong>exceptional entertainment and culinary scene</strong>, Northbridge achieves top scores in lifestyle metrics including Hip (10/10), Family (9/10), Lifestyle (10/10), and Community (9/10). The precinct's vibrant atmosphere makes it a destination for both locals and visitors.</p> <p>The area benefits from <strong>strategic proximity</strong> to Perth Train Station, the new ECU City Campus (under construction), Perth Arena, Perth Museum and Cultural Centre, and the CBD. This central location ensures strong foot traffic and accessibility.</p> <p>A notable market indicator shows zero residential dwellings approved for construction in the 2023-24 financial year to October, signaling a tightening market that supports both rental and capital growth in the area's commercial property sector.</p>
Additional Location Information File<p>The property is leased to HungryPanda, a popular Asian food delivery online service with operations across Australia and New Zealand. They specialize in connecting customers with thousands of local Asian restaurants, particularly Chinese cuisine.</p> <p>The tenancy has <strong>just commenced</strong> with a fresh 3-year lease starting November 8, 2023, and running through November 7, 2026. This new tenant relationship offers stability with the full lease term ahead.</p> <p>Security for the landlord is provided through a <strong>bank guarantee of $15,168</strong>, equivalent to 4 months' rent, minimizing risk to the property owner. The lease structure is Triple Net, meaning the tenant is responsible for covering all outgoings including management costs according to the lease agreement.</p> <p>The tenant and seller are confirmed as <strong>unrelated parties</strong>, ensuring the transaction and lease terms are at arm's length market rates. The property and tenancy arrangement include <strong>two allocated parking bays</strong>, providing additional value and convenience for the business operation.</p> <p>This 84sqm ground level tenancy is fully self-contained with kitchen and bathroom facilities and offers dual-occupancy potential should the tenant wish to sublease in the future, subject to appropriate approvals.</p>
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<p>This property presents a compelling financial proposition at <strong>$479,000</strong> with a <strong>6.25% Triple Net Lease</strong> structure, ensuring the tenant covers all outgoings including management costs.</p> <p>The current annual rent stands at <strong>$29,918</strong>, structured with an initial base rent of $29,500 p.a. including two car bays. The tenant has received a year 1 incentive with the rent reduced to $24,111 p.a., however the seller has agreed to a <strong>$5,800 cash contribution</strong> prior to settlement to cover this shortfall, effectively maintaining the advertised yield from day one.</p> <p>The lease includes <strong>4.5% annual rental increases</strong> stipulated in the agreement, providing built-in income growth. Total annual outgoings amount to <strong>$11,881</strong>, broken down as Council Rates ($1,776.65), Strata Levies including GST ($6,033.00), Perth Parking Licences ($2,481.80), and Water Service Charges ($1,590.00).</p> <p>Security is ensured through a <strong>bank guarantee of $15,168</strong> (equivalent to 4 months rent). The property previously sold for $443,000 in 2021, demonstrating solid capital appreciation in a short timeframe.</p> <p>For investors, the acquisition requires a <strong>$25,000 deposit</strong> with settlement terms of 21 days from going unconditional, following due diligence and finance periods of 25 and 28 days respectively from contract exchange.</p>
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<ul> <li>Triple Net Lease structure with 6.25% yield offering zero landlord expenses</li> <li>Fresh 3-year lease commenced November 2023 with 4.5% annual increases</li> <li>Prime Northbridge location in a thriving cultural and entertainment precinct</li> <li>Tenant security with bank guarantee of 4 months rent ($15,168)</li> <li>Two dedicated secure car bays included - rare for the area</li> <li>Built in 2009 providing good depreciation benefits</li> <li>Versatile 84sqm floor plan with dual-occupancy potential</li> <li>Fully self-contained with kitchen and bathroom facilities</li> <li>Walking distance to Perth CBD, train station and major attractions</li> <li>Strong local population growth of 2.91% supporting increasing demand</li> <li>Previously sold for $443k in 2021 showing solid capital growth</li> <li>Wheelchair accessible with disabled toilet facilities</li> <li>Priced at an attractive entry point of $479,000 for commercial investors</li> </ul>
