This article is from the Australian Property Journal archive
A LOCAL investor has bought a five-level office building in Southport on the Gold Coast after auction for $5.8 million, on an initial yield of 0.5%.
Kaybank Plaza is largely vacant and the price reflects a building rate of $2,105 per sqm based on an NLA of 2,755 sqm.
Colliers International’s James Crawford and Ed Howard handled the sale of the property located at 33 Scarborough St Southport.
Originally developed by former Gold Coast businessman and developer Katranski, the building also features a two level basement car park for 80 vehicles, set on a land area of 1,591 sqm.
“The new buyer is a local investor who is reviewing various opportunities for the building but will likely reposition the building with a major refurbishment,” Crawford said.
“The office leasing market has continued to improve with vacancy rates at their lowest level in eight years. The options for companies seeking 500 sqm tenancies or larger are pretty slim,” Howard said.
This transaction follows a string of recent Southport CBD office building sales including Bankwest Business Centre sold by James Crawford late last year for $8.3 million and the recent sales of Bartercard House at 121 Scarborough St Southport for $11.6 million and the Connaught Centre at 26 Marine Parade Southport for $9.7 million.
“With a strengthening leasing market and no new supply of office in the local market, buyer demand is expected to remain strong,” Crawford said.
Australian Property Journal
