Melbourne investor goes off-market to snare Nerang commercial asset for $2.39 million.

A Melbourne investor has taken a proactive approach to the Gold Coast’s fiercely competitive commercial market to snare a prime retail property in the heart of Nerang for $2.39 million in an off-market deal negotiated by Colliers.

The buyer, who has been eyeing opportunities on the Coast for some time including a shopping centre at Jacobs Well in the city’s north, chose an off-market approach to secure the property.

The sale of 43 Price Street, Nerang, has been struck on a premium yield of 5.17 per cent which is in line with tightening returns for commercial assets.

The Melbourne buyer, who had been tracking the Gold Coast retail assets on the Gold Coast for some time, was among 25 parties who had lodged an expression of interest for the Bayside Centre at Jacobs Well which was marketed by Colliers in a high-profile campaign. The centre drew 130 inquiries, highlighting the competitive conditions for commercial property on the Gold Coast.

Colliers Ryan Chandler and Jacob Griffin negotiated the off-market Nerang sale through their respective relationships with the purchaser and vendor.

“After multiple experiences facing fierce competition from other willing buyers on publicly listed properties, the purchaser was swift and genuine with their off-market interest,” said Mr Chandler.

 “The purchaser provided a premium yield off market with an unconditional contract of sale to prove to the vendor they were a serious and genuine buyer.”

The single-level Nerang property is located on a 1,106sqm corner site and has a net lettable area of 552sqm. It comprises 10 individual tenancies and is fully leased, offering a net rental income of $123,708 per annum. The property has a WALE of 1.1 years by income.

“It’s become evident from recent sale campaigns that the Gold Coast is attracting an incredibly high level of interest from investors across the nation seeking a better return on their capital than simply accruing low bank interest,” said Mr Chandler.

“Given the current buyer density for multi-tenanted, freehold, commercial assets, premium prices are being achieved beyond what we anticipate based off reviewing recent and past sales.”

Mr Chandler said with demand running strong across the board for commercial assets, the timing was perfect for vendors considering selling their properties regardless of their condition.

“Whether the asset is fully leased, partially leased, vacant, under rented or requiring work, there is a variety of purchasers willing to acquire with ‘passive’ and ‘value add’ intent,” he said.