Record-breaking new price for Coast property
A BIRTINYA office block has just set a new mark for Sunshine Coast commercial real estate, selling to a syndicate of investors for $10.812 million.
The price will provide an initial yield of 8.81% equating to $3630 per square metre of the total net lettable area of 2978 sqm across the three level development, a return that doubles that available in capital city markets.
The 3305 square metre fully-leased medical zone property, known as Kawana House, has a net income of $950,000 from seven commercial tenants including a cafe and two telecommunications antennas.
The complex provides undercover parking for 108 cars over two levels.
The sale was conducted by CBRE Metropolitan Investments as a result of a successful Expressions of Interest campaign by both the CBRE Sunshine Coast and CBRE Brisbane offices lead by Tony Justo from the Sunshine Coast Metropolitan Investments' team.
Mr Justo said the six-week campaign attracted strong enquiry across Australia with particular interest from high net worth individuals, commercial property trusts and medical investment funds.
It resulted in 13 inspections during the campaign period resulting in five documented offers and a further three revisions on close.
The property was the first commercial office to be developed in Kawana Business Village occupying a prominent 3599 sqm parcel of land east facing over Lake Kawana.
Stage one was completed in 2002 and the second stage in 2005.
Kawana House represents 8% of the 40,000 sqm of commercial office space now developed in the expanding Kawana Business Village.
The precinct forms part of Oceanside Kawana which has drawn in investment transactions totalling over $30m in the past 12 months.
Commercial vacancy rates in the village now sit below four per cent.
Mr Justo said the market fundamentals of the Kawana House asset were sound, being a fully-tenanted freehold investment with a strong street presence, full medical zoning within a controlled master planned precinct which is experiencing more than $3 billion dollars in infrastructure investment.
The sale settled Monday with the transfer of title from Kawana 8 Developments Pty Ltd to an established South East Queensland property syndicate.