– Two residential tenants, two commercial tenants
– Vacant land at rear with access for future development
– Potential 9.7% Gross Annual Return
Like so many commercial buildings in South Grafton, 27 Skinner St is rich in history.
Originally built c. 1923 by local builders Strauss & Son, the original proprietor was J.C. Lane a local chemist who later went onto become Mayor of South Grafton from 1942 – 1950.
When it was built it would have been quite cutting-edge, as its architect F.J. Board of Lismore had not worked much in Grafton, and local historical documents explain “This building is architecturally significant for its well proportioned symmetrical facade and carefully executed cement render bands and mouldings which have a strong Art Nouveau motif. This is a unique building type for Grafton derived from late Edwardian predilections.”
Today it is arranged over two storeys with four tenancies – two residential, two commercial. The current total return is $1005.50 per week ($192.50 per week from the Saddlery, $193 per week from the Hairdresser, $310 per week from the upstairs flat and $310 per week from the downstairs flat) allows for a 9.7% annual return on outlay. In fact if you do some back-of-envelope maths you see that $1005.50 per week is over $52,000 and that minus Council rates ($3200) and building insurance ($3700) you will clear around $45,000 which shows a net return of approx 8.5% per annum on current rental rates.
In addition to the four tenancies and the $1,000-odd per week they generate, there is a generous amount of vacant land at the rear accessed by Through Lane which could be developed further with storage sheds (or anything else allowed in the B3-Commercial Core zoning).
The residential spaces in the building have been recently renovated or improved in many ways and offer high ceilings and big rooms. There are two old garages for the flats and plenty of backyard space.
Whats the catch? It seems too good to be true! Yes it does. Obviously with a nearly century year old building there will be ongoing maintenance and upkeep – and McKimm’s Real Estate can provide all interested parties with a full written building & pest report to quantify any works needed. That said the simple fact that you have four tenancies, vacant land to develop and a building primarily made of brick means this is a superb investment.
Please note: Owner happy to deal in crypto-currency to approved clients.
Contact agents for more information today.
