The home of West Perth’s newest brewpub, BrewDog at 16-20 Gordon Street, has sold for $5.725 million in a deal brokered by leading independent commercial real estate agency Sterling Property.

The property, located at 16-20 Gordon Street, was sold as a leased investment, following an Offers Invited campaign that attracted more than 85 enquiries. 

Originally built as Gordon Street Auto Electricians, the 956 sqm building was refurbished and converted to popular café Gordon Street Garage in 2011.

Last year, national hospitality group Australian Venue Co took on the lease, evolving the offering further to  become the first Perth venue for global craft beer group BrewDog, which operates four other Australian  brewpubs, in Brisbane, Sydney and Melbourne.

Sterling Property Principal Partner Brian Neo, who brokered the sale, said the property generated strong  interest from local and national investors as well as prominent food and beverage operators.

Mr Neo said the buyer was attracted to the property’s strong fundamentals, its long-term 10-year lease and  the redevelopment potential of the underlying land.

“This property really stood out in the market due to its prime location and the strength of the tenant,” Mr Neo said.

“Australian Venue Co is a reputable national operator, and their commitment to a 10-year lease with options  for extension was very attractive to investors.

“The additional redevelopment potential of the site also made this an attractive investment. 

“The property sold on a yield just above 6 per cent net of income, which aligned with our appraisal  guidelines.”

Mr Neo said the sale also demonstrated strong appetite among high-net-worths and institutional investors  for well-located commercial properties with strong tenants.

“Despite some challenges in the broader economy, assets such as this continue to perform well and attract savvy investors,” he said.

“The transformation of this site from an auto electrician shop to a popular café, and now to a trendy brewpub, really showcases its versatility.

“It’s a testament to the property’s adaptability and the changing face of West Perth.”

The property was advertised with a price guide in the mid to high $5 million range, reflecting a yield between  mid-5 per cent to mid-6 per cent. The sale price of $5.725 million came in line with expectations.

Sterling Property will continue to provide asset and facility management services for the new owners,  ensuring the property remains well-maintained and operating smoothly.