 Asset Class: | Retail |
 Price: | $ 2300000 |
 Net Yield: | 6.00 % |
Net Yield - including solar strategy: | % |
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Positioned on a prominent 218 m² (approximate) corner site within the tightly held North Hobart precinct, this immaculately presented freehold property is securely leased to the well-established hospitality operation ‘Roaring Grill’. The property offers excellent corner site exposure at a busy intersection, to Hobart’s premier dining and hospitality district.<br><br>The property comprises a well-maintained two-storey building with approximately 250 m² of internal space. Featuring ground and first floor dining areas, a full commercial kitchen and bar, as well as male, female, and accessible amenities, the asset is highly functional and visually appealing. Originally constructed circa 1890, the building has been enhanced over the years, with modern services including reverse cycle air-conditioning, and benefits from level access and a first-floor alfresco area.<br><br>The asset offers a strong net income of approximately $137,256 per annum, underpinned by 3% fixed annual rental increases and a market review at the end of the current term. The net return of 6% is impressive given the strength of the location, and being a freehold asset. <br><br>The property is fully leased to Burgundy Holdings Pty Ltd, trading as the highly regarded 'Roaring Grill'. The current operator took over the existing lease with a term that extends to January 2029, with a further five-year option. The tenant pays all service charges and reimburses key outgoings, demonstrating a strong commitment to the premises and maintaining the building in good condition.<br><br>Strategically located on the corner of Elizabeth and Burnett Streets, the asset enjoys exceptional exposure in one of Hobart’s most vibrant dining and lifestyle precincts. It benefits from close proximity to the CBD and is surrounded by landmark venues such as Annapurna, Room for a Pony, and the Republic Bar. National food operators such as ‘Grilled’ have recently joined the precinct on long term leases. The area is supported by strong pedestrian and vehicular traffic, excellent transport connectivity, and consistent growth in both tourism and residential demand.<br>
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North Hobart, affectionately known as "NoHo," is a vibrant suburb just north of Hobart's city center, celebrated for its eclectic dining and entertainment scene. The heart of this neighborhood is the lively stretch along Elizabeth Street, lined with an array of cafes, restaurants, bars, and pubs that cater to diverse culinary tastes. This bustling strip has been likened to Melbourne's Lygon Street, offering a similar cosmopolitan atmosphere on a more intimate scale. Notable venues include the historic State Cinema, an art-house theater that has been showcasing films since 1913, and the Republic Bar & Café, renowned for its live music performances. <br><br>Beyond its gastronomic and entertainment offerings, North Hobart boasts a rich architectural heritage, featuring a mix of character homes and heritage-listed streets that reflect its historical charm. The suburb's proximity to the Hobart CBD, just a ten-minute walk away, makes it a convenient destination for both locals and visitors seeking an urban experience with a neighborhood feel. Additionally, North Hobart is home to several esteemed educational institutions, including The Friends’ School and Elizabeth College, adding to its vibrant community atmosphere. <br>
Additional Location Information FileRoaring Grill is a long standing occupier of the building. Roaring Grill is a modern Australian restaurant. The restaurant is renowned for its high-quality steaks and commitment to showcasing Tasmania's finest produce. Their beef and lamb are sourced from the Cape Grim region on the northwest coast, grass-fed Wagyu beef comes from Robbins Island, and their seafood selection includes oysters from Bruny Island and salmon from the Huon. <br><br>The menu features a variety of dishes, with a focus on grilled meats and seafood. Signature offerings include Wagyu porterhouse steaks served with potato purée and seasonal vegetables. The restaurant also boasts an extensive wine list, emphasizing Tasmanian wines to complement their dishes. <br><br>The Freehold owner ran the business successfully until 2019, then sold it to a new operator. The operator had little hospitality experience and ran the business poorly, and on-sold the business to the current operators mid last year. There are now two owners, both local and successful in their own right. The freehold owner advises that since taking on the business they have always paid rent on time. <br>
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301 Elizabeth Street, North Hobart – 250m2 - $660/m2 6 Salamanca Square, Battery Point – 130m2 - $788/m2 25 Salamanca Square, Battery Point – 222m2 - $766/m2 369 Elizabeth Street, North Hobart – 200m2 - $510/m2 (inferior location) 346 Elizabeth Street, North Hobart – 275m2 - $518/m2 (inferior location) 353 Elizabeth Street, North Hobart – 87m2 - $567/m2 (inferior location)
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• Prime corner site of approximately 218 m² with outstanding street frontage<br>• High-exposure North Hobart location near major commercial and dining precincts<br>• Fully leased to 'Roaring Grill' with term to Jan 2029 + 5-year option<br>• Net income of approximately $137,256 pa with fixed 3% annual increases<br>• Healthy 6% return given the freehold nature of the asset, and prime location<br>• Full commercial kitchen, licensed restaurant use, and alfresco dining<br>• Tenant pays all service charges and reimburses statutory outgoings<br>• Zoned ‘General Business’ under Hobart Interim Planning Scheme 2015<br>• Located within a rapidly developing precinct with ongoing capital growth potential<br>
