Commercial buildings in Sydney CBD

Discussion in 'Commercial Property' started by Beano, 17th May, 2016.

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  1. Beano

    Beano Well-Known Member

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    Yes I have based the deposit on $8m
    I do consider myself a small investor as there are many individual persons that have $10m + rent roll that I know of who i consider Medium investors
    Large investors are the likes of Frank Lowry
    I am definitely not a large investor
     
    Beano, 19th May, 2016
    #21
  2. hobo

    hobo Well-Known Member

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    ROFL

    (Yes, I know, not contributing..... but I can't help it.)
     
    hobo, 20th May, 2016
    #22
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  3. D.T.

    D.T. Specialist Property Manager Business Member

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    If you only have 8m, maybe save a little longer so you can cover LMI, Stamp Duty, etc as well?
     
    D.T., 20th May, 2016
    #23
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  4. 158

    158 Well-Known Member

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    One thing for sure, money can't buy personality.

    pinkboy
     
    158, 20th May, 2016
    #24
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  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I walked away. No built ins.
    Sound system sounded like it need fixing too.
     
    Paul@PAS, 20th May, 2016
    #25
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  6. D.T.

    D.T. Specialist Property Manager Business Member

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    Doesn't have much street appeal?
     
    D.T., 20th May, 2016
    #26
  7. Phantom

    Phantom Well-Known Member

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    No LUG either. :(
     
    Phantom, 20th May, 2016
    #27
  8. Player

    Player Well-Known Member

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    Street appeal and views aren't too bad.

    20160520_065936.jpg

    Actually here is the building in question...............

    20160520_114208.jpg
     
    Player, 20th May, 2016
    #28
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  9. Scott No Mates

    Scott No Mates Well-Known Member

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    IIRC it's floodprone so insurance will be a nightmare.

    Has plenty of parking. There's a couple of ROW for adjoining buildings.

    Being next to a park might be an issue.
     
    Scott No Mates, 20th May, 2016
    #29
  10. Carrytrader

    Carrytrader Active Member

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    Also typical 50% lvr for these is pushing it. Banks rarely go past 55%.
     
    Carrytrader, 21st May, 2016
    #30
  11. Phantom

    Phantom Well-Known Member

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    And being so old....there is no depreciation left....also I don't fancy getting the roof pressure cleaned. Harnesses that can support a human on such steep angles......
     
    Phantom, 21st May, 2016
    #31
  12. Scott No Mates

    Scott No Mates Well-Known Member

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    @York - there's a couple of $ depreciation left - it gets refurbished frequently with a couple of new bars as well.

    There's possible some $ to be had on asbestos removal too.

    Tiles are glazed and self-cleaning :)
     
    Scott No Mates, 21st May, 2016
    #32
  13. Shady

    Shady Well-Known Member

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    I'd agree you'd be looking around 5.5% cap rate. Unless it's a re-development play, then forget about cap rates and look at the zoning.
    Which agent is selling the property?
     
    Shady, 21st May, 2016
    #33
  14. Beano

    Beano Well-Known Member

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    Colliers
     
    Beano, 22nd May, 2016
    #34
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  15. Steven Ryan

    Steven Ryan Well-Known Member

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    @Beano - have you looked into the chance that you may be able to redevelop the site in the future (or get a DA and flick it)? There's plenty of sky above.
     
    Steven Ryan, 22nd May, 2016
    #35
  16. Omnidragon

    Omnidragon Well-Known Member

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    Not sure about Syd, but I've seen inferior but similar highriss /buildings in Melb CBD sell for 3-4% cap rates, with no room to go up. Would've thought Syd is pricier yield wise.
     
    Omnidragon, 4th Jun, 2016
    #36
  17. dby

    dby New Member

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    7 storeys and HSBC leases ground, lvl 1 and 6.
    @Beano I am a microinvestor by your definition, but I have a personal and special interest in this property. I expect that at minimum a 'medium' investor would back this for its redevelopment in the long term. I would seriously consider going in on this deal as a syndicate but need a medium investor to back me...
     
    dby, 4th Jun, 2016
    #37
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