For little more than the price of the average home in Sydney, you can own a basketball facility that just last year belonged to a professional team.
More than eight months after National Basketball League franchise the Townsville Crocodiles announced their exit from the national competition, the team’s former training centre is still up for sale.
And it’s taken a significant price cut as the hunt for a buyer intensifies – down from around $2 million when it was first listed last year to $1.3 million now.
Castles to camping grounds: 2016’s most popular commercial properties
Commercial Insights: Subscribe to receive the latest news and updates
Colliers International’s Shaun McLaren, who is selling or leasing the 1692sqm former Crocs headquarters and 5132sqm of land it sits on, in conjunction with Ray White Commercial, says while there has been significant interest in the facility, the owners have been unable to strike a deal with potential buyers.
You couldn’t rebuild the facility for that amount of money. It’s below replacement cost
“We’ve had numerous people make offers on the building, and a couple of times it’s gone to contract, but circumstances have meant that it hasn’t come off,” McLaren says.
The Crocs withdrew from the NBL ahead of the 2016/17 season, with the league and the team’s owners saying the small market club was commercially unsustainable.
The team’s stadium, owned by a number of local businessmen who were associated with the team, has been vacant ever since, despite the hefty price drop as the owners sought to cut ties.
“The asking price right now is $1.3 million. I think when it first went to the market, it was probably closer to $2 million. As the market has changed, so have the expectations of the owners,” McLaren says.
“For $1.3 million it’ll be a great buy for someone. It’s just a matter of finding someone who has that need that can utilise the facility.”
That need is somewhat specific, given the building includes a 790sqm basketball arena, a 196sqm gymnasium and almost 770sqm of office space. It also has 44 on-site car parks.
We’ve had numerous people make offers on the building, and a couple of times it’s gone to contract, but circumstances have meant that it hasn’t come off
McLaren says that while the initial asking price and the facility’s location at Wulguru, about 9km south of Townsville, might have counted against it in initial negotiations, its current asking price couldn’t be ignored.
“You couldn’t rebuild the facility for that amount of money. It’s below replacement cost,” he says.
“There’s a good mix of buildings, in that there’s professional office space, gymnasium, storage area and then the basketball court.”
“It appeals to a broad range of people and there’s been strong interest from a number of community groups who’d love to have the facility, but the problem is … having the means to own it.”
The facility is zoned for use as a sporting club or facility, but McLaren says it could potentially accommodate other uses, after consultation with local council.