The premises that hosts the Mount Isa Coffee Club has sold for $865,000 under the hammer at Burgess Rawson's Flagship Portfolio Auction late last month.
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A Sydney buyer picked up the 505sqm retail asset at the Melbourne auction on a record low yield of 7.5%, which is securely leased to The Coffee Club, who have occupied the space since 2010.
The 21A-21B Miles Street site features a 220sqm building offering popular indoor and alfresco dining areas.
Burgess Rawson selling agent Craig Chapman said a long-term lease to an established franchise offers the new buyer a prime 'set-and-forget' investment.
"With fixed 3% annual increases, this Mountt Isa asset guarantees the new buyer steady income growth, paired with the security of a brand new 10-year head office lease to a high-profile tenant, plus leasing options extending to 2034," Mr Chapman said.
"It is rare we see assets with such high-profile tenancies such as The Coffee Club, an established international brand currently operating 400 stores across nine countries around the world, available at this price point.
"We've certainly noticed investors' eagerness to look outside metro centres for great value investments with strong tenancies, particularly more entry-level buyers looking to get their foot in the door, and this Mount Isa sale is a perfect example of this trend."
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Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
