Southport CBD building snapped up for $5.8 million

Southport CBD building snapped up for $5.8 million
Southport CBD building snapped up for $5.8 million

Kaybank Plaza, a five-level office building in Southport on the Gold Coast, has been snapped up for $5.8 million by a local investor just days after auction.

The building at 33 Scarborough Street sits on 1,591 sqm of land and also has a two-level basement with parking for 80 cars.  

The selling agent was James Crawford of Colliers International and Ed Howard.

Crawford said 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 2,755 sqm.

The property has potential for multiple uses under the Southport Priority Development Area zoning such as medical and education, said Howard. It is also close to Southport light rail station.

“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,” he said.

“The office leasing market has continued to improve with vacancy rates at their lowest level in eight years. The options for companies seeking 500 sqm tenancies or larger are pretty slim.”

The building was originally developed by former Gold Coast businessman and developer Katranski who built Kay Plaza and the adjoining Kay House in the late 1980’s.

The 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 Crawford.

Tags: 
Gold Coast Commercial Property

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