Silverstone Developments has sold its recently completed Newstead office building to the John James Memorial Foundation (JJF) based in Canberra, in an off-market deal worth $26 million. The sale price represented a yield of 5%.
The brand new four-storey office building at 11 Commercial Road, Newstead was completed in December 2021.
The asset was sold fully leased with a weighted average lease expiry of seven years, with anchor tenants, I-Med Radiology occupying 66% of the 2,156 sqm of net lettable area.
The boutique building is situated between the James Street and Gasworks precincts approximately 1.5km from Brisbane’s CBD. Designed by Red Door Architecture, the building boasts an open-air rooftop terrace and garden as well as a large atrium to maximise natural light throughout and features 22 on-site car parks.
Cushman & Wakefield’s Mike Walsh and Peter Court handled the end-to-end transaction after initially selling the vacant site to Silverstone Developments in 2019.
Cushman & Wakefield Director & Joint Head of Middle Markets, Mike Walsh, said: “The sale is further evidence of the well documented thematic of capital seeking secure, a quality-built asset that is well-leased with strong tenure.”
“Combined with the building being brand new and occupying a prime location in Brisbane’s most sought-after mixed-use precinct, JJF moved quickly to secure the opportunity off-market.”
Silverstone Developments’ Managing Director, Troy Daffy, said “We were very fortunate that the completion of the building worked out perfectly with I-Meds requirement and the team at Blackwatch Projects did an amazing job in tough circumstances to deliver such a quality project right on time”
Russell Meacham from JGS Property who acted on behalf of the John James Foundation, said “we were attracted to the quality of the tenants and the amenity the building offers in a prime inner-city location.”
The sale continues a strong run of transactional activity that the Cushman & Wakefield Middle Markets team has exclusively brokered for Silverstone Developments, with deals now totalling $260million over the past 18 months alone.