Stonebridge Property Group’s listing of the standalone Caltex Service Station in Burwood East will test the market for a product that combines both a secure income stream on a prime underlying landholding.
Located on Middleborough Road, right at the heart of Burwood East, the Commercial 1 zoned 1,118sqm site will attract the interest of investors with an eye for potential rental uplift and development opportunities.
The freestanding service station is securely leased to EG Group (branded Caltex Woolworths) with a passing net income of approximately $120,000. The service station forms part of the Burwood Heights Shopping Centre adjoining a strong trading Woolworths supermarket.
According to Stonebridge Director, Kevin Tong, who is marketing the property with Rorey James and Nic Hage, the service station is located on one of the most trafficked roads in the south east with Middleborough Road being passed by over 22,000 vehicles daily.
Mr. Tong added “This service station is unique given that it is a ground lease, meaning the rent is well below market levels and the maintenance and management of the structure is ultimately managed by the tenant making this headache free.”
Stonebridge Director Rorey James also added “Single tenanted metropolitan investments are rare and highly sought after by investors and have been over a long period of time and in many instances have produced very strong results. That has been due to some of the best investment credentials you will find in any commercial property asset including secure leases, blue-chip tenants and high underlying land value.”
“Daily needs tenants, like service stations, with an exceptional track record of performance, add another level of tenancy and rental income security which is particularly attractive in uncertain times,’’ Mr James said.
“We are not simply talking about a recession-proof income stream from a blue chip tenant, but a property which also offers potential development prospects down the track given what is happening in the precinct,’’ Mr Tong said.
He said the increasingly affluent locality was experiencing high levels of investment and population growth, especially driven by the Brickworks Frasers development across the road.
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