Investors feeding frenzy expected for commercial property sale at Horseshoe Bay
A commercial building hosting several of Magnetic Island’s most popular businesses is being sold for the first time in 28 years. See where.
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With its stunning view of the Coral Sea, a rare piece of Magnetic Island commercial property was expected to attract a significant investor interest after hitting the market for the first time in 28 years.
Situated on the iconic Horseshoe Bay Esplanade at 6 Pacific Drive, the freehold building containing four fully tenanted retail shops – Noodies, Horseshoe Bay Fish and Chips, Cafe Nourish, Island Fever Surfwear – was listed for sale by Raine & Horne Townsville on June 19.
Given how rare it was to be able to purchase a freehold commercial property on the island, Raine & Horne principal Steve Leaumont said it represented an incredible opportunity for a savvy investor wanting to secure a foothold in Horseshoe Bay’s bustling recreational hub.
He said the building had been owned for decades by two brothers, one a Magnetic Island resident, and the other who was based in New South Wales.
“It was just time to move on. They’re getting a little bit senior in their years and it’s time to pass it onto someone else that might have new energy and new ideas,” Mr Leumont said.
“You’re getting a footprint on the Esplanade of the Coral Sea. Magnetic Island is increasing in value every day now, so a very astute investor will pick it up quite quickly.
“It features four fantastic tenants, all locked into three year leases. The under roof is over 800 sqm, and the return is extremely positive.”
While he was unable to publicly reveal the property’s yield or asking price, he anticipated that the building would sell in the high $1m to low $2m price range.
Since going to market, he said a diverse range of prospective purchasers had stepped forward to express interest, from local families to southern investors.
“There’s always been an interest in Magnetic Island, it’s been a real destination point, however that interest has grown and grown quite significantly, and the people from down south are looking to invest as well,” he said.
Keen to capitalise on that interest by establishing a permanent presence in the Magnetic Island community, Mr Leumont has struggled to locate a suitable commercial space.
“(Magnetic Island’s) commercial listings are tracking amazingly well, there’s a real shortfall of commercial properties,” he said.
“For example, I’m trying to locate a commercial premises for my franchise over there, and I’m struggling to get one. They’re in real short supply.
“(We’re) trying to locate the correct shopfront in Nelly Bay and the vacancy rate would be zero.”
For more information, visit www.raineandhorne.com.au/magnetic-island
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Originally published as Investors feeding frenzy expected for commercial property sale at Horseshoe Bay
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