James St Burleigh property: Huge price paid for building

A buyer has shelled out an eye-watering price for a Burleigh building in what is being described as a sale that ‘breaks a psychological barrier’. Here’s what they paid.

A BUILDING in the main Burleigh Heads retail strip, the tightly-held James St, has drawn a $7m buyer willing to accept a return of less than 4 per cent on their investment.

The unnamed buyer jumped in weeks before a planned auction and lobbed an offer which was taken by the 26 James St’s long-term owner.

The property returns $275,800 a year, delivering the buyer a return of 3.94 per cent.

Tony West, of Lacey West, said the sale broke a psychological barrier with the sub-4 per cent yield.

“The transaction shows the strength of James St which, through thick and thin, has had historically low vacancy levels,” he said.

“Buyers are willing to accept lesser returns to get a presence in the street.”

Outlets at 26 James Street, Burleigh Heads.

There are six tenants in 26 James St, which is on a 407sq m site and adjoins a Woolworths supermarket.

Seller Nev Cullen bought the property from Frizelle Investments for $810,000 in 1991 and owner-managed it.

Mr West handled the sale with Lacey West’s Josh Cruden and James Borbidge.