FINE FOOD: Buyer splashes $2.2m on favourite eatery
THE HOP & VINE Restaurant Bar's freehold in Noosa's iconic Hastings Street has been purchased for $2.2m by a Brisbane-based investor who not only liked the food but also the returns available.
The 195sq m space was tenanted by a successful operator who also ran another similar business in the Noosa area.
The property was marketed and sold by Ray White Commercial Noosa and Sunshine Coast North Property Consultant John Petralia.
He said tenanted investment properties were performing strongly in an environment where bank interest rates were not increasing.
"Even if they don't go down again there is little chance of them going up," Mr Petralia said.
"People with experience and the nerve are buying vacant commercial sites that need attention and turning ugly ducklings into swans. The braver money is in that sector."
The Hop & Vine freehold buyer had recently sold a residential property in Hastings Street to shift their investment to a commercial asset.
Mr Petralia said Ray White had taken inquiries from all of the major cities leading to a number of offers and counteroffers.
"The buyer had strong faith in Hastings Street in terms of securing tenants in the future and the growth potential it offers," he said.
"The tenant has invested a significant amount into refurbishing the tenancy after the previous tenant had vacated. This added value and highlights the benefits of spending money on an asset.
"The buyer had actually eaten there a number of times so they were comfortable with the tenant's operation of the business."
"The asset produced a net rent of about $139,360 p.a. plus outgoings plus GST and has a lease until September 2021, with two three-year options on the deal."