A golden attraction
Location and price point score $2.4m for Coast office block
A GOLD Coast-based travel agency hard hit by the coronavirus pandemic has offloaded its central Southport office to investors for $2.4 million.
ANZCRO, which stands for Australia New Zealand Central Reservations Office, has held the 6 Short Street asset since paying $1.125m for the property in 2001.
The company, which markets tours to New Zealand, is led by managing director Nick Guthrey, and has seen its business hit by travel restrictions between Australia and New Zealand.
Late last year James Crawford and Steven King, of Colliers International Gold Coast, were tasked with taking the asset, partially occupied by ANZCRO, to auction. Mr King said the auction was postponed due to COVID-19 making it difficult for several parties to make the trip to the Gold Coast.
However, he said five parties came forward after the asset was listed at offers above $2.3 million before it sold to a Gold Coast investor making her first commercial investment.
“She has typically invested in residential but was really attracted by the location there. She considers Short Street to be one of the better commercial locations on the Coast as far as offices are concerned,” he said.
Mr King said the interest was so strong they could have sold it “four or five times over”. He said freestanding office buildings rarely hit the market.
“It wasn’t just the location but the price point too. There are not too many freehold office investments sub$2.5m on the Gold Coast.”
Mr King, who previously led a successful campaign to sell an office building at 38 Cavill Avenue in Surfers Paradise for $6.1 million, said it was too hard to tell whether more stock would come to the market. “A lot of the owners are keeping them tightly held but there is certainly the demand from buyers for that type of asset.”
The two-level building at 6 Short Street has a net lettable area of 811sq m and returns net annual income of $99,358 plus GST. Current occupancy is 62 per cent and there are 16 basement car parks.