CBD asset for sale
A SOUTHPORT CBD office building — which counts an ASX listed company as a tenant — has hit the market.
CBRE’s Kyle Youngson and Steve Clark are leading the marketing campaign for 7-11 Short St, which last sold for $9.1 million.
Owner Zyent Pty Ltd, linked to David Hams, of the Victorian property investment company Hams Group, is cutting ties with the asset after five years of ownership.
The campaign launch follows the sale of Southport Chambers, at 56 Nerang St, for $6.973 million.
Mr Youngson said they expect interest from high-net worth individuals, small funds, and syndicates.
“We think activity will pick up now that the Games is over,” he said.
“A lot of buyers had held off making decisions in the lead up to, and during, the Games.”
The building has 2500sq m of floorspace over six levels and counts ASX-listed retirement village operator Eureka Group and Place Design Group as tenants.
A number of government departments are also based at the building, including the Department of Housing and Public Works, and they make up 37 per cent of the tenant mix.
The building returns a net income of $736,126 after outgoings.
Mr Clark said the building also comes with approval to build a 242sq m restaurant at the front.
An expressions of interest campaign closes on May 31.
Mr Clark and Mr Youngson recently joined CBRE from Colliers International Gold Coast.
They will focus on marketing leased investments and development sites.
Mr Clark said the market remains ripe with opportunities, especially at the southern end of the Gold Coast.
“I think there is definitely opportunity on the Gold Coast. Owners still need to be mindful that, while we are in a very, very, good climate, prices are market driven. Whether or not there are any records set this year I don’t know. Yields will continue to be sharp, but won’t tighten further.”