the facts

16
grattan street

prahran

Sold 16 Grattan Street Prahran TCI - An in depth look behind the scenes of the campaign. We'll explain the pros, the cons, the challenges and the reveal!

THE PROS

Long term lease to tenant trading as Anytime Fitness Prahran
Operated as Anytime Fitness since 2012
Located on Grattan Street – within immediate proximity to Greville Street, Chapel Street & Prahran Market
Wide frontage onto Grattan Street
Minimal Land Tax, being a strata title
7 on-site secure car parking spaces (6 on stacker)

THE CONS

Leased to an Anytime Fitness franchisee and not guaranteed by Anytime Fitness
The property was a strata title, hence limited growth in comparison to a free standing title

THE CHALLENGES

The tenant removed the car stackers during the sales campaign, without the approval of the Vendor, reducing the total number of car parking spaces to four
The building in which the property formed a part of had significant defects. A quote of $434,046 to rectify the damage was submitted to the insurer via the Owners Corporation and was pending a VCAT hearing
During the time this matter was pending and unresolved, it had the likely potential of precluding interest from prospective purchasers
The purchaser identified the damage claim during their review of the contract and indicated they may withdraw their interest. To overcome this, we negotiated for the property’s lot liability of the damage quote to be held in trust, pending resolution i.e. a maximum amount of up to the property’s lot liability would be available to the purchaser which was to be withheld from the sale proceeds, in the event the insurance claim was not approved

THE REVEAL

TCI sold the property for $2,325,000, representing a 6.01% return
Market expectation was circa 6.75% return at the time
Final result being 8.2% above market average

the facts

market expectation

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RETURN

RESULT

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%

RETURN

difference

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%

higher

Campaign performance

PERCENTAGE

percentage

RETURN

market average

RESULT

the facts

16
grattan street

prahran

THE PROS

THE CONS

THE CHALLENGES

THE REVEAL

the facts

market expectation

RETURN

RETURN

higher

Campaign performance

PERCENTAGE

percentage

RETURN

market average

sold 16 grattan street

sold 16 grattan street

sold 16 grattan street

sold 16 grattan street

sold 16 grattan street

sold 16 grattan street

sold 16 grattan street

sold 16 grattan street

sold 16 grattan street

sold 16 grattan street

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