A CBD building has set a commercial sale price record for Orange after it was sold for $11 million at auction on Tuesday.
Benchmark Commercial real estate director David Hall said the four-level building opposite Robertson Park at 60-62 McNamara Street was bought by a Sydney property group.
Tenants include the Orange Surgery Centre, the Westpac Bank and the state government.
“It’s certainly Orange’s highest commercial property [price] for many years. It’s the most for a single-standing building,” Mr Hall said.
MAP: Where is the building located …
“Only the shopping centres, [including the Summer Centre complex which sold for more than $22 million in February] would have sold for more.”
Mr Hall said the new owners were not planning any changes and would keep the existing tenants, most of which are on long-term leases.
“The price was consistent with our expectations and evidence that the commercial investment market remains very strong in Orange,” he said.
It’s certainly Orange’s highest commercial property [price] for many years. It’s the most for a single-standing building.Benchmark Commercial real estate director David Hall
“This is a significant investment for an investor to make in a regional area.”
Mr Hall said the sale price was driven by the quality of the tenants.
Westpac Bank has a five year lease to 2021 with options to extend to 2027, the NSW Education Department has a three year lease with an option to 2023 and the Orange Surgery Centre and the medical centre have leases until 2028.
The total net rent being paid annually is $847,820.
He said while the Orange commercial property market was strong he did not believe there were many other buildings in the CBD that could fetch such a high price.
Mr Hall said it was the first time the property, with 2465 square metres of floor area on a 1111 square metres block, had been sold since it was built in 2003.
He said several parties were interested in the property after a four-week marketing campaign by Benchmark and Sydney real estate agents Burgess Rawson and Associates.
However, he said the successful party were the only ones to bid at the auction which was conducted at Doltone House in Elizabeth Street, Sydney.
Orange City Council this week finally approved a public toilet block to be built in Robertson Park, over the road from the property.
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