Nambour Industrial Investment Sold
A freehold industrial investment with a national tenant at Nambour on the Sunshine Coast has been sold by Ray White Commercial Noosa & Sunshine Coast North for $940,000.
The property at 1-5 Price Street, Nambour, was sold prior to auction to a local investor by Ray White Commercial Noosa & Sunshine Coast North’s Paul Butler and David Brinkley on behalf of a local investor for a yield of 7.1 per cent.
Paul Butler said the 564 sqm building has a long term tenant in Bridgestone Select tyres and automotive repairs and is secured on a 5 + 5 + 5 year lease returning net rental of $66,811 per annum.
“We had very good enquiry levels on the property with a lot of investor interest being sparked by the national tenant on a secure lease term,” he said.
“There were a couple of offers submitted early on during the marketing campaign which didn’t quite meet the vendor’s requirements. We then had the successful buyer make an attractive offer prior to auction which the vendors wanted to lock down.”
David Brinkley said investors are finding it challenging to find quality investment stock.
“With this shortage of stock and the current record low interest rates we are seeing a gradual compression on capitalisation rates on properties with secure lease terms,” he said.
“Freehold sites such as 1-5 Price Street are also in high demand. Buyers and investors are very active in the sub $2 million price range and are willing to pay a little more to secure a freehold rather than a strata titled investment.