Narrabundah's XO building up for sale

Popular inner south restaurant, XO, was nominated by Gourmet Traveller recently as one of Canberra’s best restaurants of 2018.

A new four-year lease has recently been signed on its premises at the Narrabundah shops with options that could run it through until 2028.

The two-storey building sits on a 223-square-metre site with a garage at the rear. The restaurant occupies the ground floor with the first floor used for office and storage space. There’s a total lettable space of just over 400 square metres.

Mitch Frail of Burgess Rawson says Number 16 Iluka Street is a rare opportunity for an investor to buy into a tightly held location.

“There’s a lot to like with such an established, secure tenant who has helped build up the destination status of the local precinct,” he says.

“They’ve reinforced their belief in the area with a commitment that could see XO remain part of the local community for another 10 years.”

Frail says the property returns a net annual income of $90,036 plus GST. There’s 3.5 per cent fixed annual rent increase and the tenant pays any increases in outgoings over the base year.

“This is an ideal opportunity for a self-managed superannuation fund and for first-time investors,” he says.

“There’s also a strong prospect the property may sell under the commercial stamp duty threshold of $1.5 million.”

NARRABUNDAH

16 Iluka Street 

About $1.385 million

Auction: 11am, October 23 at Doltone House Hyde Park, 181 Elizabeth Street, Sydney

Agent: Burgess Rawson, Mitch Frail 0429 103 979