PROPERTY INVESTORS BANK ON BUDERIM

Signalling a renewed interest in low-risk quality commercial property, dozens of investors registered their interest in purchasing a highly visible retail holding on Burnett Street, Buderim on the Sunshine Coast.

The highly sought after retail property at 1/72 Burnett Street opposite the Woolworthsanchored Buderim Marketplace, was sold in July after a 28-day expression of interest campaign attracted more than 50 enquiries and six written offers.

Sold to a local investor for $2.035 million on a passing yield of 6.8 per cent Luxe Commercial managing director Chris Sales said the interest was an indication of strengthening market conditions and investors looking for consistent returns.

“Tight lending conditions for investors in the residential property market has seen a shift towards commercial properties,” Mr Sales said.

“Commercial properties in high volume traffic areas such as this with reputable tenants and quality leases in place are on the agenda of investors throughout Australia.

“Burnett Street was highly attractive for all of those reasons. Its 15m of street frontage and two tenants on long-term leases in a well-established suburb such as Buderim is a rarity.”

Located 4km from the major arterial roads and 10km from the beaches of Mooloolaba the 303sqm site was effectively split down the middle into two manageable tenancies and leased to tenants on long-term leases with fixed annual increases of between 3per cent to 3.5per cent.

On one side of the building is the Commonwealth Bank of Australia, with a six-year lease to 2021, plus options to 2030, while on the other is the Danny Green-backed 12-Round Fitness chain on a five-year lease with options to 2026.

The net annual income of the property is $139,725 with tenants covering all outgoings.

For more information on the sale of 1/72 Burnett Street or to see what the value of your commercial property might be please contact Luxe Commercial managing director Chris Sales on 0404 866 520.

Leave a Reply

Your email address will not be published. Required fields are marked *