The Forza Joseph Street Fund is a joint venture between Forza Capital and a family office which holds 10,803m2 (~ 1.1 hectares) of land at 6-16 Joseph Street, Blackburn North, Victoria. The Property comprises a two-level office/warehouse with 6,266m2 of Net Lettable Area (NLA) and 73 at grade car parks.
Purchased for $11,000,000, the Fund acquired the property given its income repositioning potential (part of the site was vacant), the size of its landholding and the strategic nature of the site which is a small pocket of gentrifying industrial holdings surrounded by residential dwellings. Currently zoned Industrial 3, the property has the potential to be rezoned to Commercial 2 which may avail the Fund further rental opportunities into the future.
The Fund was constructed as a joint venture opportunity due to the size of the acquisition and the short term nature of the due diligence that could be secured.
Since acquiring the site, the Fund has re-leased the vacant warehouse to a new tenant and has undertaken a refurbishment of tired office space which it is currently marketing for lease. The Fund is investing monies to further improve the physical asset as well as clean up the site and improve car parking opportunities.
The Fund is currently providing investors cash distributions of 5.20% per annum and this will increase once the office vacancy is leased and some of the other tenancies are repositioned.
- Date January 22, 2019
- Tags Operating Investments