Investors swoop on sizzling Coffs commercial market
COMMERCIAL real estate in Coffs Harbour is hot property following a number of high-profile sales, the most recent being the building which houses The Good Guys.
The building at 300 Pacific Highway, North Boambee Valley sold for $5.175-million.
The property, sold by Savills Retail Directors Jon Tyson and Steve Lerche was purchased by a private investor.
Mr Tyson said the building generated solid interest from more than 120 buyers, with multiple offers submitted during the sale campaign.
The 2496sq m property sits on a site totalling 5916sqm and the sale price represents a yield of 7.49%.
Mr Tyson said the yield achievable on properties like this has investors very active.
"We are seeing solid and ongoing demand for large format retail assets and we are predicting this trend to continue well into the New Year,” he said.
"With a regional catchment of over 200,000, Coffs Harbour is also one of the fastest growing and most dynamic areas within regional NSW. The purchaser was attracted to the solid lease covenant and free-standing nature of the investment.”
The Coffs Harbour building was one of 15 owned by the Muir family, who started the Good Guys in 1952. The business stayed in the family until late 2016 when it was purchased by JB Hi-Fi Ltd for $870-million.
The family remained owners of the properties their stores had occupied until April this year when they decided to sell the portfolio, which was fully leased to the electrical and white goods chain.
The buildings in Ballarat, Bendigo, Geelong, Hoopers Crossing, Mildura and Thomastown in Victoria, Albury, Ballina, Bathurst, Caringbah, Coffs Harbour and Warrawong in NSW, Cairns and Ipswich in Queensland and O'Connor in WA were listed for prices ranging from $2.5 to more than $13-million.
Nine of the properties were snapped up in July for $92-million.
The Good Guys sale is not the highest-value commercial property sale on the Coffs Coast this year.
In June the Coffs Harbour Home Central Retail Centre on Gerard Dr sold for $11.75-million. The 6544 square metre bulky goods centre which houses Pillow Talk, Spotlight and the Choice Variety store was snapped up by licensed boutique investment firm OzProp.
Ten more commercial properties in Coffs Harbour have achieved a sale price of more than $1-million dollars so far in 2017.
The Boulevard Arcade was snapped by the C.ex Club for $4.08-million in March, a motel at 1a Maclean St sold for $2.8-million in April and an office block housing a law firm in West High Street sold for for $2.5-million in March.
Last month, Federation House in Moonee St was taken off the market despite offers in excess of $10-million.