The property tenanted to The Landing Bar and Kitchen at Honeysuckle is set for auction in December and its prime harbourside location is expected to prove attractive to investors.
The property will be part of Burgess Rawson's final Flagship Portfolio Auction for 2019 in Sydney on December 10. The 523 square metre ground level property with two car spaces is situated on Lot 21, 1 Honeysuckle Drive in Newcastle's premier waterfront precinct and has an annual income stream of $226,965 per annum with fixed three per cent annual increases.
It is anticipated the investment, depending on interest at the auction, is likely to sell on an attractive net yield of "circa seven per cent" which equates to a price of approximately $3.25 million.
The site is tenanted by an established popular Newcastle CBD eatery on a five-year lease to January 2024 with options extending to January 2029.
According to Burgess Rawson's Tom Doran, the property's appeal is in the growing popularity of Newcastle.
This outstanding investment occupies one of Newcastle's best inner-city locations.Tom Doran
"The site offers both upmarket and casual dining opportunities with alfresco areas. It is immediately adjacent to the CBD nearby the rapidly expanding Newcastle University and close to the recently completed light rail line," Mr Doran said.
"Located in a high-growth region coupled with an established tenant and stunning waterfront views of the Hunter River, this outstanding investment occupies one of Newcastle's best inner-city locations so we anticipate keen interest."