Stadia Capital, representing a private investor, has successfully acquired the 333 Adelaide Street tower in the heart of Brisbane's CBD Golden Triangle for $41.75 million.
The 14-storey B-Grade office tower, strategically located at the northern gateway of Brisbane CBD's Golden Triangle, stands as a testament to prime real estate. Boasting an enviable position on Adelaide Street, the tower offers 7,499sqm* of Net Lettable Area on a 911sqm* site and has recently undergone an extensive capital expenditure program, with over $8.35 million* invested in upgrades within the past 36 months. The building has had great tenant retention with over 50% of the tenants being in the building for 15 plus years.
Sold exclusively through Mike Walsh and Peter Court of Cushman & Wakefield along with asset manager Peter & Bill Costello of Costello Group one defining feature of 333 Adelaide Street is its impressive Weighted Average Lease Expiry (WALE) of 4.42* years^, demonstrating the building's robust income stream.
Mike Walsh of Cushman & Wakefield said “The tower's income is underpinned by a 12-year lease to Australian Moreton Education and is further reinforced by a diverse occupancy mix including the Australian Workers Union and Sydney Business Travel Academy. This tenancy mix ensures stability and a strong foundation for sustained growth.”
“When you combine this with a 9% initial yield and a below replacement cost argument at $5,567/sqm gross when the average of B-Grade office deals in the preceding 18 months were trading at $8-10k/sqm, it makes for a compelling investment that has forward priced risk at an attractive level.”
Asset manager of the building and director of Costello Group, Peter Costello, said the sale is a credit to his client’s foresight in appointing an independent asset manager.
"Costello Group were appointed as the asset manager by the private investment syndicate in 2019 with the goal of repositioning the predominantly vacant building.”
“Over the past four years, Costello Group has overseen significant capital upgrades to enhance the leasing credentials of the building attracting a significant increase in leasing activity and reducing the building vacancy to 9% whilst securing long-term rental returns.”
Stadia Capital was established in 2019 by Principals Jason Kougellis & Scott Staniforth.
Strategically positioned to capitalise on Brisbane CBD's comprehensive public transport options and vibrant lifestyle amenities, 333 Adelaide Street offers unparalleled convenience. With Central Train Station just 275 meters* away, Eagle St Ferry Terminal & Dining within 300 meters*, and the popular Queen Street Mall a mere 450 meters* distance, the tower's location seamlessly integrates work and leisure.