Investor pays $1.25 million above the reserve for Redfern commercial building

A commercial investor has bought a corner commercial building in Redfern, Sydney, for $5.15 million, paying $1.25 million above the reserve at auction.

The tenanted property at 401-409 Cleveland Street on the corner of Crown Street and Cleveland Street was sold by Arissa Property Group director Frank Scarf on behalf of Gordon Salier, trustee of the deceased estate of the late Edmond Wardy.

The property had been in the family for 20 years.

Five bidders competed for the Redfern property in a “spirited” auction, according to Scarf.

It stands on an 809-square-metre site with an approximate gross floor area of 1,403 square metres.

The building brings in a current passing income of $312,000, which represents a passing yield of 6%.

The ground floor comprises a café, bakery, hair salon, Turkish restaurant and a large vacancy formally tenanted by Blockbuster video on the top floor.

The first floor is an open plan commercial space.

Also at the same auction, Arissa Property Group sold a level block of approximately 685 square metres at 74 Mitchell Road, Alexandria, 10 minutes from the CBD.

It sold under the hammer for $1.9 million to a private developer on behalf of the same trustee of deceased estate of late Edmond Wardy and has a current net income of $84,196 with a 4.4%.

“We’re seeing a lot of investor interest in the inner-city region, which is very promising for Sydney’s ongoing market growth,” says Scarf.