A freehold four-storey commercial building along 118 Joo Chiat Road (pictured) has been put up for sale via an expression of interest (EOI) exercise, carrying a guide price of $20 million or $1,077 psf on the existing gross floor area, revealed marketing agent JLL.

With a gross floor area of about 18,571 sq ft, the property, which comes with an attic, is nestled on a 4,686 sq ft site zoned commercial under the 2014 Master Plan.

It has a mechanical carpark that could accommodate up to nine vehicles and is approved for shops and offices on the ground and upper floors respectively.

Located near the Eunos and Paya Lebar MRT stations, the property is a 15-minute drive from the Central Business District and is accessible via the Kallang-Paya Lebar Expressway and Pan Island Expressway.

Being situated near the Paya Lebar growth precinct, the property’s new owner can expect to enjoy “capital and rental upside from the urban regeneration and the gradual transformation of the area in the mid–to-long term”, said Clemence Lee, senior director with of capital markets at JLL.

He noted that investors can consider various value-add angles.

“Firstly, the existing tenancies can be terminated allowing an owner-occupier to immediately occupy the building, or for an incoming investor to refurbish the building or change the existing tenant mix. Secondly, the current driveway at the building can be decanted to create additional retail space on the ground floor,” he said.

“Lastly, as a commercial property, there is flexibility for the new owner to consider a number of alternative uses such as co-working, commercial school, kindergarten, retail and medical centre, subject to approval by the authorities.”

The EOI exercise for the four-storey building closes on 14 May.

Source: 10 April 2019, CommercialGuru