Tenant Secures Their Future With Development Upside Attached
While some developers are offloading sites and construction activity slows, a Gold Coast industrial site with upside for medium-density residential development sold well over reserve at auction recently.
The 1,012sqm Kirra site, which has housed an automotive tenant for several decades, attracted an eager crowd of more than 30 onlookers when put under the hammer by LJ Hooker Commercial Southern Gold Coast. Following bids from six registered parties – and two prior contract offers - 13 Appel Street property eventually sold for $2.77 million. Indeed, the automotive repairer that calls the site home was the eventual purchaser.
Used for industrial and zoned for residential development, the site is only 500 metres from famed Kirra Beach with Coolangatta State School across the road.
“The site is neighboured by medium-density residential projects,” said Ms Imlach, Head of Commercial at the agency. “While the site is currently industrial, the planning scheme has earmarked the site for residential purposes under any future redevelopment.
“Despite rising interest rates and inflation still pushing up the price of construction materials, we still received a lot of interest from property developers.
“The tenants were ecstatic to purchase the site: it would have been hard for them to find an alternative industrial address on the Queensland side of the border.
With the winning bid, the business owner now has security of operations and the opportunity to land bank and explore redevelopment opportunities in a future property cycle, said Ms Imlach.
Ms Imlach said the site’s proximity to amenities including Kirra’s beach, shopping strip and employment hubs including the Gold Coast International Airport, John Flynn Private Hospital and the future Tweed Hospital across the border at Cudgen had heightened the appeal of the area to developers.
She said the end of the financial year was typically a quieter period for transactional activity on the Gold Coast. However, there had been an unseasonal rise in sellers wanting to test the market over the last quarter.
“A lot of properties that have been sitting on the market have sold recently, so we’re seeing sellers’ expectations and buyer demand coming together.
“It’s an interesting trend that has emerged and we’re actually looking to bring on additional commercial sales specialists to accommodate the activity, ideally with agents who have experience in the North Tweed and border market.”
LJ Hooker Commercial Southern Gold Coast is part of the LJ Hooker Palm Beach | Coolangatta | Tweed group. With commercial agents working in tandem with residential specialists, Group Principal Daniel Alexander said the agency was able to offer a full-service real estate experience to clients.
“We have clients who have their residential and commercial portfolios managed by us and that offers both convenience and integrated strategic advice,” he said.
“It opens up so many more opportunities to our clients when they’re looking to divest, invest and diversify.”
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