89 Tingal Road, Wynnum

The sale of 89 Tingal Road, Wynnum required a methodical, multi-faceted approach.  After several years of poor management and advice from previous property managers, the vendor was left with unrealistic expectations around the property’s market value. This fully disability-compliant, purpose-built government-grade facility had served as a Centrelink office under a 10 + 5 + 5 lease, with a generous rental agreement that significantly exceeded local market rates.

The root cause of the problem can be traced back to 2017 when the seller originally purchased the property based on inflated rental income, and at a 7% nett cap rate resulted in a sale price of $7.9M. While at the time a lease to the federal government was seen as a blue-chip investment with low risk, they failed to ask a simple yet critical question: “if Centrelink vacated, what would be an achievable local market rent?”.  If this had been investigated properly during their purchase due diligence, they would have found that Centrelink were paying around 40-50% over the market rate.  When Centrelink vacated in October 2023 at the end of its initial 10 year term, it left a vacant property with an overstated expectation of value.

RWC Bayside was engaged to manage the transition and develop a path forward. Initially, a well-executed Expressions of Interest campaign was launched to sell the property, which attracted multiple offers, including one slightly above $5 million. This was within the expected market range for the vacant asset, however the seller declined these offers, believing the building’s value had appreciated. 

We then undertook a 360-degree evaluation of the asset, exploring every conceivable scenario – from re-leasing as a whole, splitting into smaller tenancies, converting to serviced offices, to assessing its redevelopment potential.

Through this comprehensive analysis, the most viable option emerged: targeting medical and allied health professionals for multi-tenancy use. A structured leasing campaign followed, but the market response made it clear – no one wanted to be the first to commit to the vacant space.

The leasing campaign generated renewed interest from buyers. Three new potential purchasers surfaced.  Although the initial contract to a speculative investor did not complete, we promptly re-engaged the underbidder, ultimately securing a sale at $5.35 million.  The new owner-occupier intends to establish a GP clinic in two-thirds of the building, and lease the balance to complementary health or professional services.

This outcome was the result of detailed analysis, careful relationship management, and strategic re-positioning of the asset. The seller had to confront the reality of past missteps, but in the end, acknowledged that every angle had been considered and the final price reflected genuine market conditions.

For honest, informed assessments and end-to-end commercial property expertise, contact Benn Woods at RWC Bayside for all your sales and leasing requirements.