This article is from the Australian Property Journal archive
THE founders Hot Tomato have placed the fully-leased office building home to the Gold Coast’s top-rating radio station to the market.
Hot Tomato occupies 928 sqm of the 3,429 sqm Southport building at 60 High Street. The rest of the building leased to Queensland Government departments, Breastscreen Queensland and Queensland Treasury and service provider MCCGC.
The property currently delivers net rental income of $1.32 million per year with a weighted average lease expiry of 2.4 years by income.
The property includes one of the largest contiguous floor plates in the Southport market of 1,400 sqm, and has undergone a major refurbishment by the current owners who founded 1029 Hot Tomato in 2002. Hot Tomato has operated from the property since 2003.
The expressions of interest campaign is being coordinated by Steven King and Bede Blatchford, of Colliers, and Steve Clark, Ryan Chandler and James Brown, of Clark Commercial. It closes on 6th March.
“The quality and longevity of tenancy positions this property among the Southport CBD’s prime office assets,” said Steve Clark, the managing director of Clark Commercial.
King said recent capital expenditure upgrades have repositioned this property as “one of the standout office buildings in Southport”.
“Amid the current strength of the Gold Coast office market, and its position as one of the best-performing markets in the country, we are expecting the Hot Tomato building to generate a significant level of inquiry,” he said. Interest is likely to come from high-net-worth private investors and possibly institutional investors.
Demand for office space on the Gold Coast amid sustained high interstate migration levels has led to a steady decline in the vacancy rate for the city’s office market. Colliers late last year forecast that the Gold Coast’s office vacancy rate, currently at 6.3%, would tighten further with no new projects coming on stream within the city’s key office precincts in 2024 or 2025.
Hot Tomato House is located on a 4,027 sqm site fronting one of Southport’s major north-south thoroughfares, next to the prestigious St Hilda’s School to the south and the modern Audi dealership building to the north, and has 95 car parks over two levels.
The agents would not be drawn on the price, however, industry sources suggest a price of circa $16 million-plus.
