Buyers primed for Pakington St pharmacy in Newtown
A prime Pakington St property is set to spark a bidding war when it hits the market for the first time in 50 years in October.
The commercial property at 322 Pakington St provides opportunities for investors and developers to acquire a prime corner site in the tightly-held river end strip shopping centre in Newtown.
Darcy Jarman, Geelong West agent Simon Jarman says the property is what’s called in the industry as a landbank with income.
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The property is leased to Peak Pharmacy and clothing retailer Mayfield.
“That’s a property that’s been held in the current family for over 50 years,” he says.
322 Pakington St, Newtown, will be offered at a highly anticipated auction. It’s a prime investment and potential development site.
“It’s got two longstanding tenants with long leases and both leases expire in 2028 and have no more options.
“So any purchaser, because that particular site is a long-term development site given it’s got three street frontages, has the confidence that they can have vacant possession in 2028.”
While primarily an investment, the development potential provides a significant upside.
Peak Pharmacy is a long-term tenant at 322 Pakington St, Newtown.
“It’s not only an excellent investment with nearly $79,000 income, it’s also a brilliant development site.”
It is expect to sell in the mid-to-high $1 million range when it goes to auction on October 4, Jarman says.
The property hit the ground running when it was first listed, sparking immediate interest from local and Melbourne investors and developers to inquire about the property, he says.
Clothing retailer Mayfield is the other tenant at 322 Pakington St, Newtown.
“Even if you look at it as a strong investment, there is very few vacancies in the entire Newtown strip, if any, at the moment,” Mr Jarman said.
“From a tenure point of view you could buy with a very low risk of never being vacant.
“You could build two to three levels in 10 years time, with a bit of retail and residential.”
The property goes to auction on October 4 at 1pm.
This article from the Geelong Advertiser originally appeared as “Why buyers are primed for this rare Pakington St, Newtown auction”.
