The new centrepiece of Beenleigh’s CBD, the York building, has sold for $33.52 million.
While it’s not known exactly how much profit that means for Logan City Council-funded investLogan and partner Alder Developments, suggestions are that the project met budget.
The sale, equating to 5.75% capitalisation, means investLogan can progress with other projects on its radar, while Alder will is believed to be looking for another opportunity in Beenleigh or Logan, along with its current Spanns Rd project.
Leasing opportunities have been open for six weeks and early indications are that leases will be announced in coming months.
The building has become known for its SoHo (home-office) units, a concept which allows people to live where they work.
“The soho units will be fully complete by the end of August,” a statement said.
The seven-storey building, which consists of 4660 square metres of commercial space, was sold to Australian Unity Investment Real Estate Limited (AUIREL).
There are four SoHo apartments, a ground floor retail space, and a dual-level underground car park.
investLogan chair Steve Greenwood said The York was purpose-built to drive economic growth within Logan’s key business centres and the sale of the project signified the next stage in the evolution of Beenleigh.
“Since its inception, The York has been a hugely exciting project for our local community with 100 jobs created during its construction phase with a further 140 full-time jobs created upon its completion,” Mr Greenwood said.
“This project provides a rare fusion of commercial, retail, and residential opportunities and will be instrumental in the revitalisation of the Beenleigh business community by creating a vibrant commercial precinct designed for local business to prosper.
“These incredibly positive outcomes deliver on the vision of investLogan; and reflect the leadership and commitment of its shareholder, Logan City Council, to driving economic growth across the city.”
Alder Developments general manager Greg Tupicoff said the sale of The York cemented Beenleigh as a key commercial hub for the district.
“As an A-grade commercial tower, The York is the first of its kind for Beenleigh and will act as a signpost in the suburb’s growth as a prosperous and well-positioned business hub and commercial landmark between Brisbane and the Gold Coast,” Mr Tupicoff said.
“The very nature of this project’s unique design encourages business diversity and will in turn foster a thriving commercial landscape where the local economy will be encouraged to grow.”
The sale was negotiated by CBRE agents Jack Morrison and Peter Chapple who said with a Government tenant secured for a long-term lease, The York provided a unique investment opportunity for Australian Unity.
“The York offers excellent income security, underpinned by a 10 year government lease over the entire office component of the asset, which was pre-committed to the project by the development JV,” Mr Morrison said.
This government endorsement of the location continues to move the Beenleigh precinct forward, driving foot traffic with more than 250 staff expected to work in the dedicated office space.
The SoHo spaces are available for lease from $400 per sqm, with each offering a total of 119.5sqmm. The ground floor retail component has the potential to be occupied as a 173.5sqm single tenancy or split into two 86.75sqm tenancies and is available from $700 per sqm.
