Maccas a bonus in Gold Coast service station sale

The Palm Beach 7-Eleven and McDonald’s.

If service station investments weren’t hot property already, try throwing a McDonald’s restaurant into the mix.

Interest came thick and fast for a Palm Beach 7-Eleven service station and McDonald’s outlet at the popular Gold Coast locale when it was offered to the market for the first time.

The retail property sold for $8.525 million on a lean 5.46% yield after agents received more than 250 enquiries and eight offers to purchase.

Pumped up: High demand drives service station prices

Savills’ Jon Tyson, who marketed the property with Michael Harcourt, says the market for service stations was already white hot, with the addition of a McDonald’s further boosting the asset’s appeal.

The site has long-term leases to both 7-Eleven and McDonald's.

The site has long-term leases to both 7-Eleven and McDonald’s.

“Quality service station investments such as this are highly sought after by investors and this property also features a McDonald’s Drive-Thru restaurant, which are very rarely offered for sale,” Tyson says.

The property sits on a 3011sqm corner site on the Gold Coast Highway, with long-term leases to both tenants and an average of 34,000 passing cars daily.

The Palm Beach site has development potential.

The Palm Beach site has development potential.

Harcourt says the property, which lies just metres from the beach, also had development upside.

“As well as the strong fundamentals of a large corner site, main road exposure and 100% lease profile to major national tenants, this property also provides for longer term future redevelopment potential,” he says.

Palm Beach is 14km south of Surfers Paradise and 10km north of Coolangatta Airport.