Woollahra Post Office building up for auction
The cheque’s in the mail at the historic Woollahra Post Office building, which is attracting the attention of savvy property investors.
Built in 1905, 97-99 Queen St (on the corner of Moncur St) goes under the hammer with an $8m price guide on November 25 via Grant Whiteman of Ray White Commercial.
“We’re getting a lot of interest because it’s such a key site,” Whiteman says.
“Architecturally, it’s a beautiful heritage building in a cracker location with rear lane access and parking.”
Before the post office was built, there was a butcher’s shop on the 405 sqm block and Whiteman was amazed to discover a newspaper clipping showing the sides of beef hanging in the open.
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Woollahra Post Office shut its doors in February 2011, but the building attracts a net income of $327,500 from three long-established tenancies.
Sunman Walker Mallos Solicitors have been on the first floor since 1988 and have a three-year lease with an option to extend for a further three.
Bonhams (London based International Auction House) is on the ground floor and on a three-year lease.
And Australia Post still pays the landlord rent because of the post boxes and mail sorting room that’s also on the ground floor.
The building has stunning heritage features throughout, including ornate high ceilings, cast iron columns, brickwork with sandstone detailing and exposed timber eaves.
The property is a low maintenance passive investment, ideal for self-managed superfunds.
The new owner could look at using the first floor for residential purposes once the lease expires.
Property investor Bob Guth picked up the building at auction for $3,185,000 in October 2001 in the wake of the September 11 attacks.
At the time he thought he had a secure tenant in Australia Post, but when the shop closed he was pleased that Bonhams took up the lease.