PALM BEACH SALE MARKS 'GOLDEN' RETAIL INVESTMENT
Written on the 22 November 2016
A PRIVATE investor has scooped the Palm Beach McDonald's and 7-Eleven service station for $8.525 million in the retail block's first time on the market.
Both McDonald's and 7-Eleven have occupied the site since it was developed in 2001 and are secured on long-term net leases with fixed annual rental increases.
Located on the corner of 19th Avenue along the Gold Coast Highway, the 3011sqm property sale represents a yield of 5.46 per cent.
Savills Retail Investments agents Jon Tyson and Michael Harcourt sold the property to a local private investor, following an expressions of interest campaign that attracted more than 250 enquiries and eight offers.
Tyson says the deal was an 'extremely rare' retail offering with exposure to more than 34,000 passing vehicles daily and fully leased to dual national anchor tenants.
"Quality service station investments such as this are highly sought after by investors and this property also features a McDonald's drive-thru restaurant, which are very rarely offered for sale," Tyson says.
Harcourt says the sale of the McDonald's and 7-Eleven property demonstrates the strong demand from investors for high-profile main road fuel and fast food sites.
He says the Palm Beach site is ideally positioned on the Gold Coast Highway to service the growing residential population and tourist trade on the southern Gold Coast.
"As well as the strong fundamentals of a large corner site, main road exposure and 100 per cent lease profile to major national tenants, this property also provides for longer term future development potential," Harcourt says.
The site is zoned Medium Density Residential under the Gold Coast City Council Plan, which allows for future development up to 29m high.