Case Studies

November 10, 2015

22 George Street, Sandringham

 

Background

 This large industrial property was self -  managed and with a pending rent review the Owner contacted us upon the realisation it may be more complex than first thought. For a fixed fee the owner asked us to thoroughly look at the property and provide recommendations on the best steps forward.


Our Response

We explored all aspects of the property including land value, impact of rezoning, building, potential tenant and lease matters, and provided a comprehensive yet straight forward report along with recommendations.

Outcome

  • An immediate rental increase $92,000 p.a to $146,000 p.a.  
  • We discovered the owner had not correctly collected GST and outgoings for six years
  • As such we collected $75,000 that the owner did not even know about was owed to him. This was additional to a rental increase of  $54,000 p.a
  • The value of the property notwithstanding the rental increase was 50% of the land value. Once the decision to realise the property was made, we created an opportunity to sell the property with vacant posession


The Sale

 We developed a highly effective marketing campaign reaping over 62 enquiries which also won the REIV Marketing Effectiveness Award for campaigns with a budget of less then $20,000. We sold the property at Auction for $3,570,000 which was $570,000 above Vendor’s expectation.

“I am very happy to say that the support and guidance given to me by Matt Nichols and his team, especially on Auction Day was welcome and appreciated. Clearly the marketing and pre-auction effort by Nichols Crowder resulted in an excellent result.”