The ongoing surge in demand for industrial investment assets during COVID has seen a Broadmeadows warehouse attract buyers from across Australia and smash the reserve price at auction.
Fitzroys’ Brent Glassford and Marco Sandrin, in conjunction with Dominic Vardaro and Alex Gazis of National Estate Agents, sold 5 Northcorp Boulevard for $2.91 million via the virtual auction, with the sale price smashing the reserve by $500,000 and reflecting a remarkably sharp 3.8% yield.
Positioned close to the gateway of the Northcorp Industry Park, the 1,330sqm building comprises a warehouse with a high 9.5m maximum clearance and two levels of office space and amenities, on a 2,243sqm site.
It is leased to TFG Group on a three-year term returning $113,300 per annum plus outgoings and GST.
Glassford said the purchaser is a private investor looking to to capitalise on the modern asset’s quality and location.
“This is not a price point or asset size that has typically attracted interstate investors in the past, but we had more than 120 enquiries from across Australia. This demonstrated both the huge demand of industrial investments during the COVID period, and the low availability of quality stock across the board, from smaller warehouses to institutional-grade assets.”
Sandrin said the mid-campaign change from on-site auction to online auction had no bearing on the result.
“The huge enquiry and recent successful Fitzroys online auctions of other commercial property assets gave all the parties confidence a strong outcome could be achieved, and the result justified that.”
He added that highly-accessible locations continue to be a major focus of investors, owner occupiers and tenants alike. The site offers excellent connection to Sydney Road/Hume Highway, and freeway access to the M80 Ring Road, and is within a short walking distance to Campbellfield Plaza shopping centre, anchored by Kmart, Coles, Aldi and Officeworks.