$821,000 fast food store sells in South Grafton
THE $821,000 paid for a South Grafton fast food outlet is an indicator of a bourgeoning food retail scene in the Clarence Valley says the agent handling the sale.
Late last year, the Subway retail store on the Pacific Highway was snapped up by a savvy investor before its scheduled December auction for an impressive $821,000, reaping a yield of 5.60 per cent, said agent Burgess Rawson sales director David Ingram.
He said the property's prime location helped to seal the deal, with the bustling food retail precinct capturing traffic flow from all directions as the main thoroughfare for travellers moving between Brisbane and Sydney.
Mr Ingram said Grafton was set for impressive growth over the coming years, with commercial real estate sales, particularly in fast food, forecast to boom.
"The Grafton market is going from strength to strength, welcoming a growing number of commercial properties to support the local economy," Mr Ingram said.
"Fast food properties were in high demand Australia-wide throughout 2017, delivering appealing results for both buyers and sellers, and it's a trend we see continuing into 2018.
"The successful buyer is thrilled to be part of the burgeoning food retail scene just outside the commercial centre of Grafton, and 4% fixed annual rent increases cemented the property as a long-term investment opportunity" he said.
Mr Ingram said the store's high visibility and an appealing 212 sqm store, in addition to a dedicated outdoor dining area, made the store highly desirable.
He said the store also enjoyed close proximity to other national brand tenants including Bunnings, BCF, Red Rooster, McDonald's, Caltex, Coles Express and Anytime Fitness - all located within 100 metres, guaranteeing a level of passing traffic.
The investment provides net income of $46,000 pa + GST and is currently tenanted to Subway until 2022 with options extending to 2037.