Occupier Beats Out Field of Investors for Industrial Freehold
A campervan manufacturer has bought a 740sqm industrial property on the Central Coast for $2.12m, staving off efforts from seven investors at auction.
The buyer only viewed the property two days before the auction of the 5 Marstan Close, West Gosford (pictured below). The buyer had been renting locally and seeking a permanent facility.
Selling agent Karen Aubrey of LJ Hooker Commercial Central Coast said the deal reflected a circa 4% yield for the four tenancies on the site – ranging in size from 160-180sqm - across the Torrens Title property.
Ms Aubrey said the leases were approaching staggered expirations. Ms Aubrey said the former leases were below market rents and renegotiations had the potential to rise 23% across the site, fully-leased, earning a gross $100,600 per annum.
The property backs on to arterial Manns Road offering signage exposure to large volumes of traffic each day.
“It was all investor interest during the campaign, and we’re continuing to see that across the wider Central Coast,” she said.
“The under-bidder went to $2.1m before the owner-occupant secured it at $2.12m.
“It's freehold, not strata, so there’s considerable upside on the site. There’s a slope at the front of the property and with retaining and filling it can add additional hardstand and parking to the property.”
Buildings on the site accounted for 740sqm while the land encompassed approximately 1,985sqm.
Ms Aubrey said the auction result was a rare result for occupiers with investors dominating the market.
“The market has turned around and investors are definitely out and about,” she said.