Purchased with Quantum

7/19 Tonga Place, Parkwood

Parkwood, Gold Coast QLD

Exterior of the warehouse complex containing the purchased Parkwood unit

The purchase story

A commercial investment, carefully brought together.

Jasmine Lewis’s client wanted a low-maintenance commercial property for their self-managed super fund, with rental income and a well-connected location at the heart of the brief. This Parkwood warehouse and showroom brought those priorities together. Close to the Gold Coast Health and Knowledge Precinct, Griffith University, Gold Coast University Hospital and the G:link light rail, it offered an established commercial setting and an existing tenancy. The property was purchased for $750,000, following a negotiation from an $800,000 asking price. With the buyer working on a mine site in Western Australia, the purchase also called for clear communication, careful coordination and a team prepared to handle the practical details from a distance.

The property and the lease

The strata-titled property is a concrete-panel warehouse and showroom of approximately 120 m², with additional mezzanine storage. Full air-conditioning, epoxy-coated floors, a high-clearance roller door and a separate glass pedestrian entry support its day-to-day use, while the LED-lit showroom provides a distinct retail presentation. A new five-year lease was in place at $43,000 net per annum plus GST, with the tenant paying the outgoings. A further five-year option provides a possible continuation beyond the initial term, subject to the tenant exercising that option and the lease terms.

A $50,000 difference at the negotiating table

The property was listed at $800,000. Jasmine negotiated a purchase price of $750,000, bringing it $50,000 below asking. Based on the stated annual net rent of $43,000, that change in price lifted the initial net rental yield from approximately 5.4% at the asking price to approximately 5.7% at the agreed purchase price. Those figures compare annual net rent with the property price, before acquisition costs, and describe the position at purchase.

Patience during the contract stage

The vendor’s personal circumstances and restructuring of their affairs made the contract stage more involved. Understanding that context helped Jasmine manage the conversations with patience while keeping the buyer’s interests in view. Strong working relationships with the selling agent, conveyancer and broker helped the parties respond when decisions or documents were needed. For a client working remotely in Western Australia, having those conversations coordinated was an important part of the buying support.

The final signature travelled to a mine site

Just before settlement, the bank requested a wet-ink signature on a final document. With the client on a mine site in Western Australia, an ordinary signing appointment was not an option. The document was couriered to the site, signed and returned in time. It was a practical detail with a significant deadline attached, and tight organisation across the team helped keep the settlement moving.

The outcome for the SMSF buyer

The client secured an income-producing commercial asset within their super fund at $50,000 below the asking price. At purchase, the stated $43,000 annual net rent represented an approximately 5.7% net yield, with tenant-paid outgoings and an initial five-year lease. The additional five-year option offers a possible longer tenancy, rather than a guaranteed ten-year term. Just as importantly for this buyer, the team handled the negotiation and the coordination needed to complete a purchase while they worked on the other side of the country.

View the original commercial property listing

Considering a similar purchase? Talk with us about the area, the type of property and what you need it to do for you. You can explore our property search, due diligence and negotiation support before getting in touch.

A conversation with Quantum

Assessing Commercial Property: The Numbers Matter

There is more than one way to approach a purchase. This separate conversation from the Quantum team explores 3 Red Flags When Buying Commercial Property. It offers some extra context to the buying story above; it is not footage of this particular purchase.

Watch this video on YouTube

From the Quantum Buyers Agents YouTube channel.