Low-Site Coverage Industrial Investment With Long Lease - Rent & Development Upside

Client MandatePaul is a HNY investor who engaged us to source his 2nd commercial Investment property, ideally with a 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, these 3 warehouse buildings sitting on a large 6470m2 industrial zoning in a tightly held precinct of Brisbane has 2 tenants: one in occupation for a long time with a 10+5+5year lease to 2038; and the second on a 5year lease at 20-30% below market rent to be extracted in 2025. Both lease have annual increases providing a low-maintenance, stable and secure income to our client. We negotiated a $175,000 price reduction, and conducted extensive DD establishing a well below market rent with future upside that will greatly benefit our client.