An iconic commercial hub in the heart of Caloundra has sold for close to $10 million.

The Caloundra City Centre building, at 51-55 Bulcock Street, was owned long term by a local family but it’s now in the hands of Sydney-based investors.

It’s one of the beach town’s most well-known premises, with a floor area of 2428sqm and 42 tenancies.

Henzells Agency negotiated what is one of the largest commercial sales in Caloundra’s main street.

Caloundra City Centre building
The complex is in a prime position.

The agency’s Commercial Manager Paul Bell said the building was in a prized location.

“The Sydney buyers had been searching nationally for a site and in the end could not go past Caloundra as a sought-after growth area and lifestyle destination to invest in,” he said.

“The traditional markets of Mooloolaba and Noosa have held the spotlight for years, however there is definitely a shift in focus to Caloundra and the Southern Sunshine Coast amongst commercial buyers.”

The three-level building, with 56 undercover car parks, had attracted waves of interest from prospective buyers around the country before it was sold.

There were 7251 views and 77 enquiries on in 96 days, plus hundreds of engagements through newspaper ads and the Henzells website.

The building, which is 250m from the beach, hosts a mix of tenants, include accounting, finance, solicitors, barbers, hairdressers, coffee shops and computer information technology.

“The buyers secured a fully tenanted investment with net rent of around $650,000 and significant development upside,” Mr Bell said.

According to the agency, the buyers saw scope to work with existing tenants. They will continue to lease it out and potentially put their own spin on the building with future improvements.

commercial building
The building has 42 tenancies.

Henzells, which has its offices across the road from the building, will manage the commercial leases ongoing.

Confidence in the southern Sunshine Coast market was further evidenced with the recent settlement of medical building ‘Suite 21’ in the Lake Kawana commercial precinct, also marketed by Henzells Agency.

“The property attracted strong interest, eventually selling to a local medical professional as an investment, for near to the $1.95m marketed price. It remains tenanted by ASX listed fertility company Virtus Health,” Mr Bell said.

There has been a burst of activity in Caloundra among residential and commercial sales in recent times.

The Centrepoint Marketplace retail centre at 50 Bulcock Street, adjacent to the Caloundra City Centre sold for $7.3 million.

Meanwhile, settlement was reached on a prime CBD site that will be transformed into a $95 million residential and retail tower. Some multimillion-dollar projects are also set to change the face of the town, including the $250m Paloma and Paloma and BIANCO Caloundra.

Article source: Queensland Property Investor