Mermaid site’s $2.31m auction sale
A MERMAID Beach building whose tenants include a Ray White agency and cafe Vintage Espresso has sold under the hammer for $2.31 million.
The three-tenancy, two-storey building occupies a 407sq m site on the beachside of Gold Coast Hwy at 43 Alfred St and hosts a hair salon on its upper level.
It has a lettable area of 339sq m and four on-site parking spaces.
The property generates just over $165,000 in net annual income and sold on a yield of 7.1 per cent.
It has been bought by an undisclosed investor who was among 80 registered bidders vying for 21 properties offered at auction last week by Ray White Commercial Gold Coast.
The building, marketed by Steven King, has been divested by Vanora, a company linked to a Casuarina-based investor, which acquired it for $1.75 million in early 2014.
The auction campaign achieved sales of more than $20 million. Six properties sold on the day, four ahead of the auction and three following the event.
The highest price achieved under the hammer was $9.8 million.
The sum was bid for a retail holding at 33-44 Brisbane Rd, in the Ipswich suburb of Ebbw Vale, tenanted by vehicle dealership Bremer Ford.
The Mermaid Beach property achieved the top price at the auction for a Gold Coast offering.
Ray White Commercial Gold Coast director Greg Bell described the outcome as the best for a Gold Coast commercial auction in some time.
“Most buyers were from southeast Queensland and the demand was across the board for industrial, retail and commercial assets, which is an very encouraging sign for the market,” he said.
“Stand-alone retail assets such as the Mermaid Beach property are tightly held and always generate solid interest from buyers.
“The strong tenant mix and the location on the beachside of the Gold Coast Hwy made the property a particularly attractive proposition.”
Other properties that sold at auction included a warehouse precinct at 55 Bailey Cres, Southport, which realised $1.31 million and a retail outlet at 9/2893 Gold Coast Hwy, Surfers Paradise, which fetched $770,000.