Hot auction as Glebe’s Iku Wholefood store smashes reserve

An eastern suburbs investor has paid $125,000 above the reserve for a Glebe institution in a pressure cooker auction.

The building housing Iku Wholefood sold for $805,000 after a dozen bidders traded multiple bids in person and online.

The result of 25A Glebe Point Rd is around the same price that a typical residential apartment in Glebe trades for, according to realestate.com.au.

Ray White Commercial’s Kristian Morris, who sold the property with Lachlan Palm, says it was an unexpected result after receiving more than 90 inquires during the campaign.

“All the consistent feedback from the buyers throughout the campaign was between $600,000 and $700,000, hence the vendor setting the reserve price at $680,000,” he says.

The ground flood has a cafe layout.

“To achieve $125,000 above the reserve was a testament to the auction process.”

The property is home to the first Iku Wholefood store in Sydney, with the local business operating from the premises since 1985. They were still operating on an expired lease and the tenants were willing to resign a new deal.

“Buyers were concerned about the tenant leaving but were also excited by the value-add potential in the property,” Morris says.

The site currently generates an estimated rental return of $38,000 per annum, with Iku Wholefood paying 100 per cent of outgoings.

The building also enables the new owner to explore a number options including the possibility of converting the upstairs floors into a residence for extra income

The courtyard has rear lane access.

At the time of coming to market, Mr Morris said opportunities to acquire a site in a thriving community near several universities are few and far between.

“Assets like this are highly sought-after by investors and owner-occupiers because it’s pretty rare for one to be available on what is a very tightly-held strip,” he says.

Iku Wholefood is a health food store that sells vegan food and products.

This article from The Daily Telegraph originally appeared as “Glebe building home to first Iku Wholefood store sells smashes reserve in firecracker auction”.