Industrial Investment With 7+7 Year Lease To A-Grade Tenant

Client MandateJ is an experienced Residential investor who engaged us to source his first commercial Investment property, ideally with an A-grade tenant, long leases and a solid 6% net yield. His main goal was to have a low-maintenance investment with a quality tenant to avoid any headaches or risks of vacancy.
‍ResultSourced off-market, this large 3000m2 industrial property in a small estate of 6 has an A+ tenant in occupation since 2021 on a 7year lease to 2028 + 7year option to 2035, with strong CPI or 3.25%with annual increases providing a low-maintenance, stable and secure income to our client. We negotiated a $200,000 price reduction, and conducted extensive DD establishing a well below market rent with future upside.

2024 upsideFast forward 3years and our client is thrilled with the the property being revalued at $5,100,000. A $1,100,000 equity gain in just 3years, better than our expectations.