Sanctuary will see 70 upmarket commercial spaces finished to a luxurious standard on a prime 5542m2 site in a highly accessible location at 515 Olsen Avenue, Southport.

Baja, the developer behind what will be the Gold Coast’s largest luxury Man Cave community, is offering buyers a 12-month rental guarantee, leasing spaces with a return of 6%.

Kollosche Commercial sales agent Adam Grbcic, who is selling Sanctuary off-the-plan alongside Jack Brinsmead, says the incentive is unmatched on the Gold Coast.

“I don’t believe this has ever been done before,” says Adam.

“This effectively means the developer will lease the space back from the investor for up to 12 months with a 6% return.

“That gives the investor 12 months to find a tenant, offset any of the incentives which that tenant is going to ask for, and minimises the risk from the investment side.

“It really takes all of the pressure off the buyer.”

Choose the Best Tenant

The 12-month rental guarantee period encourages owners to be selective in choosing a tenant, an approach that benefits both the landlord and the developer.

“The point of the rental guarantee is to offset your costs of finding a tenant and allow you the time to find the right one,” says Adam.

“From the developer’s point of view, this approach increases the chance of owners securing good long-standing tenants because the pressure is off. The benefit runs both ways.”

Returns of 6% are appealing for both local and interstate investors with a purchase price of $561,000 generating a rental return of $33,660.

“The added sweetener on Sanctuary is that is will be a brand new building so investors can then add their depreciation on top of that,” says Adam.

“Factoring in the depreciation, the return is more like 6.5%-7% for the first five years.”

By comparison, older buildings in the Southport and Burleigh Heads industrial precincts are returning around 5%, making Sanctuary a far more lucrative return on investment.

Interstate Investors Jump Onboard

Sydney and Melbourne investors were quick to see the value in Sanctuary, with the first five sales made to interstate investors.

“On the Gold Coast the return on Sanctuary is .05-1% higher, but Sydney and Melbourne investors are used to getting 3%-4% returns so this is very appealing to them,” says Adam.

The demand for industrial property on the Gold Coast means demand is already high for the Sanctuary product, with industrial vacancy rates estimated to be below 5%.

“Vacancy rates are low which shows the demand for this style of property,” says Adam.

“The demand is coming from eCommerce, logistics, general storage, and from the growth of small business. The location is central and the size of these spaces are sought-after.”

Ranging in size from 113m2 to 150m2, each multi-level space is to be air-conditioned and will include a kitchenette and bathroom with a shower and sleek black tapware.

Full mezzanine levels will have timber flooring while ground floors are to be finished in a showroom-style epoxy resin.

Due to the design, layout and high standard of finishes, no additional capital works are needed – buyers and tenants can simply walk in and set up.

Pricing starts from $482,410 and the project is scheduled for completion in 2024.

For more information and pricing, contact Adam Grbcic on 0404 087 772 and Jack Brinsmead on 0434 377 282.