Browns Plains warehouse sells for $675,000

A HIGH exposure strata warehouse/office has sold for $675,000 at 1/78-80 Eastern Road in Browns Plains following a successful campaign.

The asset consisted of showroom, warehouse and office across 390sq m* and came with an air-conditioned mezzanine office with great natural light.

The property was marketed and sold by Ray White Commercial Gold Coast South Sales Sam Riley, in conjunction with Harry Egan from Ray White Industrial Milton.

Mr Egan said investors were increasingly willing to pay tighter yields for investments with long-standing tenants in place, occupying specialized assets.

“The sale was reflective of a 7.5 percent yield which aligns with where the market currently stands for similar style of investment properties,” he said.

“The mixed-use site was well suited for the long-term tenant and gave them faith to recommit to a fresh 3+3-year lease.

“The investor was on the outlook for a longer term lease but had faith in the asset and covenant based upon how rarely similar properties become available for lease.”

Mr Riley said the property offered unique attributes which are generally difficult to find with industrial property and was in a tightly held pocket of Browns Plains.

“The sellers were in a position to sell their underlying property asset to put back into their business which yields greater returns,” he said.

“We knew the sub-$1M investor market was performing strongly and the asset would attract a variety of investors.

“The level of enquiry was steady throughout the campaign with particular interest from locals wanting to purchase for their SMSF and interstate investors chasing higher yields.”

*Approximately.