A strategic spin on a Maroochydore leasing opportunity has led to a standout deal and a high-profile addition to the Sunshine Coast town’s entertainment precinct.
Ray White Commercial North Coast Central managing director Michael Shadforth says the lease to bowling alley Spinners Bar & Bowl at 37 Duporth Avenue — achieved through the agency’s long association with the property — proves taking a risk on vacant space can pay off.
“It also shows that quality locations attract quality tenants,” Mr Shadforth says.
“The base building required some works to accommodate the new tenant and with some compromise from both parties, we were able to achieve a 9.27 per cent yield for the owner, great premises for the tenant and a fantastic addition to Maroochydore.”
Spinners Bar & Bowl, which is expanding from its operation in Caloundra, is expected to open on February 12.
Ray White Commercial North Coast Central’s involvement with the property began by selling the site in April 2016 for $1,683,000.* It had initially been offered at auction but attracted no bids.
“We finalised the sale after three months on the market and the sale rate achieved was $2047 per square metre,” Mr Shadforth says.
The team then set about finding the ideal tenant for the 822sqm office premises, sited on a 1027sqm block with main road frontage and an adjoining free council car park.
“The premises has ducted air-conditioning throughout and a flexible fit-out,” he says.
“Given that it also adjoins the recently reinvigorated Ocean Street precinct, we proactively sought a range of businesses that we considered the best fit for the site as tenants.
“These included nightclubs, gyms, restaurants and recreational facilities.”
After speaking with a number of local and national investors, followed by extended negotiations, the Ray White Commercial team secured a deal with Spinners Bar & Bowl, which signed a 10-year lease with a five-year option.
“The property proved to be right up Spinners’ alley and we certainly scored a strike, in real estate terms,” Mr Shadforth says.
“It was our team’s ability to realise the potential of the property that originally helped the owner to secure a investment with the ability to attract a long term, high-yielding lease.”