Narrabeen mixed-use property smashes reserve price at auction

Narrabeen mixed-use property smashes reserve price at auction

Dee Why NSW (22 August 2017) – A  Northern Beaches mixed-use property on Pittwater Road, Narrabeen, sold last week at auction for $3.385 million, more than 12% higher than the reserve.

“Naturally, the owner Melissa Halliwell of Fiver Trading Pty Ltd was ecstatic about the result,” said selling agent Vincent West, Co-Principal, Raine & Horne Commercial Northern Beaches. “The buyer is a private investor and a Northern Beaches local who plans to hang on to the property and enjoy the income.”

The property, built in 1992, comprises a shop and 2 residential units, and properties of this type are rarely on the market in Narrabeen. The auction attracted 9 registered bidders and a full house of spectators at Raine & Horne Commercial’s purpose-built auction room in Dee Why. Generally, a commercial auction of this nature attracts only 4 or 5 bidders, advised Mr West.  

“The vast majority of the registered bidders were investors from the Northern Beaches, and the property, at 1228 Pittwater Road, Narrabeen, sold on a 4.3% net return,” Mr West said. “This compares favourably with residential real estate, which is selling at 2.5% to 3% yields on the Northern Beaches, with 3-year bond yields of about 1.88%.”

“This asset enables an investor to diversify across 2 distinct investment classes and multiple tenants. It delivers consistent cash flow, with Balmoral Boards being a commercial tenant since 2004. The leading snowboarding retailer has just signed another 5-year lease, while the residential tenants have been in place for more than a decade.”

The 157-square-metre ground-floor shop has exceptional exposure as it’s on a corner, and it has an additional 35 square metres of storage, 2 car spaces and plenty of on-street parking for customers.

The residential units offer 2 bedrooms, and one of the units was recently renovated with a new kitchen and bathroom. At 92 square metres in size, it also has an additional 48 square metres of balconies and entertaining area with ocean outlooks.

The open-plan living and dining space is the major feature of the second residential unit, noted Mr West. “This 96-square-metre unit includes a large bathroom and laundry, and an additional 34 square metres of outdoor terrace for enjoying the ocean views and breezes,” he said.

The improvements in Narrabeen as a café and restaurant destination also helped to attract investors to the property, according to Mr West.

“Quality food and beverage outlets have popped up in Narrabeen and it’s fast becoming a restaurant hub. As a consequence, enquiries are strong for buildings with the potential to house a café or restaurant,” Mr West said.

For further media information contact:

Vincent West, Co-Principal, Raine & Horne Commercial Northern Beaches on 0403 444 000