Investor pays cash for residential, commercial asset
A five level strata titled residential and retail investment south of Gladstone has sold for $14.5 million cash.
The result for 1 Pacific Avenue, Tannum Sands, reflects a 3.6 per cent net passing yield.
Completed in 2015 with 20 apartments – said to be leased below market rates – and five commercial tenancies, four on the ground floor, the lettable area is 3475 square metres.
The non-residential agreements allow for fixed four per cent rent rises.
The complex has underground parking too.
The site spreads 1283 sqm also exposed to Ocean St.
Burgess Rawson for CBRE’s Fin Hume and Craig Chapman with LJ Hooker’s Vicki Brown acted for the developer and seller Pacav Holdings.
Sell-down upside
The median unit value in Tannum Sands, about 25 kilometres from Gladstone, has increased over 30 per cent in the past 12 months, the agents said.
This particular site is about 550 metres from the town’s main retail precinct, they added.
“The asset was not only unrepeatable in today’s construction climate but offered significant development opportunity with the entire building strata titled but wholly owned under one entity,” according to Mr Hume.
“The campaign generated a significant number of enquiries and multiple offers, ultimately resulting in a cash unconditional sale, a testimony to the strength of the asset and the market’s appetite for premium mixed use assets with significant development opportunities,” he said.
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