A block of 10 apartments registered as a boarding house in a sought-after inner Sydney location has sold for just under $5 million. 

The property at 28 Ross Street in Forest Lodge has six one-bedroom apartments and four studios on  a 302sq m site around 2.5km southwest of the CBD, within walking distance of Sydney University and  the Royal Prince Alfred Hospital. 

The fully leased asset operates as a multi-tenanted residential dwelling, spanning over three levels on  a beautiful corner block with dual street frontage to Ross Street and St Johns Road. 

It was purchased for $4.8 million by a local investor before the close of an Expressions of Interest  campaign run by James Masselos and Adam Droubi of Knight Frank on behalf of the Little Family. 

Mr Masselos said the sale campaign generated more than 125 enquiries, with the property selling  prior to the close of the campaign. 

“We fielded interest from a wide range of buyers, with prospective purchasers consisting of local  investors, owner operators, land bankers and offshore Asian capital,” he said. 

“A number of offers were received, and the property transacted at a level well above the vendor’s  expectation.  

“Purchasers were drawn to the asset’s immediate proximity to Sydney University, its corner site position, strong passing income and genuine opportunity for rental growth in the future. 

“It has a gross passing annual income of $218,530, while a potential market income of $273,000 per year.” 

Mr Droubi said the transaction demonstrated the strong demand for quality boarding house  investments. 

“The sale metrics were strong, with the property selling at a rate equating to $480,000 per key and on  a net yield of circa 4%, while typically boarding houses trade in the 5.5% to 6.5% range on a net yield  basis,” he said. 

“Not only was this property well located close to world-class educational institutions, but it is also a low  maintenance block in great condition, having been tastefully renovated and well maintained.” 

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