Miami Smash Repairs property on Gold Coast sells to investor for record yield of just 4.3 per cent
Gold Coast investors, including a solicitor, have snapped up landholdings in Burleigh Heads from the former owners of Miami Smash Repairs.
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THREE Gold Coast investors, including a solicitor, have snapped up landholdings in Burleigh Heads from the former owners of Miami Smash Repairs for $6.795 million.
Jamie and Sharon McHugh, who ran Miami Smash Repairs between 1982 and 2016, purchased seven parcels at 4-16 Hibiscus Haven between 1987 and 2003 for a total outlay of $1.92 million.
Their properties were sold at auction on Wednesday in three lots comprising five parcels at 6-14 Hibiscus Haven (home to Miami Smash Repairs), No. 4 (home to Rump on the Run, Black Hops Brewing and Organic Paws) and No. 16, which hosts Alroe Constructions.
The properties all sold to Gold Coast investors for $4.8 million, $1.105 million and $890,000 respectively.
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Colliers International’s Steven King, who marketed the properties with Adam Young, of Black & Young, said more than 30 people attended the auction, including 12 registered bidders.
Mr King said the sales realised between $1047 and $1542sq m, compared to $400-$600sq m on average for industrial properties across the Gold Coast.
“Burleigh is a hotspot and people have identified it is an emerging precinct,” Mr King said.
“It is a tight pocket there and I think because it is so close to residential there is good upside for the future.”
Mr King noted that although the area is zoned light industrial, food and beverage businesses have opened on the street recently such as The Paddock Bakery.
He said that meant a precedent had been set for alternate uses.
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Mr King said there is a shortage of tenanted investment properties on the market, creating strong inquiry for assets with strong tenant profiles.
He said buyers will pay a premium for investment properties, pointing towards the sale of the Miami Smash Repairs parcels, which sold to a Gold Coast solicitor and realised a yield of 4.3 per cent and $1264sq m. He believed that is a record for industrial property in the Burleigh area.
“Tenanted investment properties attract between 50 and 100 inquiries,” he said.
“The shortage is a result of owners saying, what do I do with my money if I sold? Obviously, interest rates are so low that it is not an attractive alternative to put money in the bank.”
Together the properties that sold occupy a land area of 5430sq m and net lettable area of 3346sq m.
The largest property is at 4 Hibiscus Haven, which is an industrial complex with a total lettable area of 652sq m. It sold on a yield of 7.7 per cent.
The property consists of three warehouses with cold storage space and a two-bedroom residential flat upstairs.
Black Hops Brewing uses cold room storage in one of the warehouses that backs on to its brewery off Gardenia Grove.
The smallest property is at No. 10 and contains a fully-leased single-level office and workshop used by Miami Smash Repairs with a total lettable area of 287sq m.
Total net income for all seven properties is $333,516.
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