Local investor likely to reposition the 2,755sqm building with a major refurbishment
Kaybank Plaza, a five level office building in Southport on the Gold Coast was purchased for $5.8m by a local investor just days after auction.
James Crawford, Director of Investment Services at Colliers International Ed Howard, Manager of Office Leasing marketed the building located at 33 Scarborough Street in Southport, which also features a two level basement with accommodation for 80 car parks.
Mr. Crawford said that the building was sold almost vacant on an initial yield of 0.5 per cent and at a building rate of $2,105/sqm based on an NLA of 2,755sqm.
“The building sits on 1,591sqm of land fronting Scarborough Street, is less than 100 metres from the Southport light rail station and is positioned in the CBD adjacent to the Australia Fair Shopping Centre,” said Mr Crawford.
According to Mr Howard the building features two street frontages, two elevators, and has a potential for multiple uses under the Southport Priority Development Area zoning such as medical and education.
“The new buyer is a local investor who is reviewing various opportunities for the building but will likely reposition the building with a major refurbishment.”
“The office leasing market has continued to improve with vacancy rates at their lowest level in eight years. The options for companies seeking 500sqm tenancies or larger are pretty slim,” Mr Howard said.
The building was originally developed by former Gold Coast businessman and developer Mr Katranski who built Kay Plaza and the adjoining Kay House in the late 1980’s.
This transaction follows a string of recent Southport CBD office building sales including Bankwest Business Centre sold by James Crawford late last year for $8.3 million and the recent sales of Bartercard House at 121 Scarborough Street, Southport for $11.6 million and the Connaught Centre at 26 Marine Parade Southport for $9.7 million.
“With a strengthening leasing market and no new supply of office in the local market, buyer demand is expected to remain strong” said Mr Crawford.