A leading Sunshine Coast developer has acquired a prime retail site 450m from a popular beachfront tourist strip.
RM Capital, the investment arm of Rafter Myers, has begun a three-month upgrade of the Mooloolaba Junction retail centre at 3 Tarcoola Avenue.
It’s also the site of a once popular McDonald’s, occupying a prominent position on Brisbane Road, which carries more than 21,000 vehicles a day.
The investor’s immediate focus is on leasing vacant tenancies, repositioning existing tenants and completing targeted capital improvements.
The property sits within the Local Centre Zone, allowing for a range of retail, medical and commercial uses and buildings of up to seven storeys under the proposed planning scheme.
Previously owned by eight individuals across 11 separate lots, it was one of the few freehold commercial sites in Mooloolaba not owned by a developer.
The investment manager acquired the 3,892sqm, three-street frontage property earlier this year for $8.85m in an off-market sale, and plans to hold and improve the asset before selling it within five years.
While the site has long-term redevelopment potential, RM Capital director Remi Rafter said the company’s focus was firmly on restoring the centre’s performance.
“With almost an acre of land with a three-street frontage, it will make an excellent future development site,” he said.
“However, our focus over the medium term is to turn it back into the thriving retail hub it once was.”
The site is currently leased to a mix of food, beverage and service businesses, including national retailers.
“We expect Domino’s, Subway and BWS to be long-term tenants of Mooloolaba Junction,” Mr Rafter said.
RM Capital is seeking new medical or retail operators to fill two vacant tenancies as part of its repositioning strategy.
“It’s already in a fantastic location, but we think it can be much more than it is today,” Mr Rafter said.
“Our focus is on attracting quality tenants that complement the existing mix, investing in the presentation of the centre and creating a place that’s convenient, welcoming and well-used by locals and visitors alike.
“That starts with securing the right tenants for the two vacant spaces, with a focus on complementary medical or retail operators.
“As Mooloolaba continues to evolve, we think this centre has every opportunity to become a genuine neighbourhood destination again.”
Mr Rafter said he regularly visited the centre as a child when McDonald’s operated from the site and believes it can once again become a popular local destination.
“Our plan is simple,” he said. “We’re going to turn it into a thriving centre.”
The acquisition attracted strong investor interest, with RM Capital’s investment fund fully subscribed within days.
Investors are forecast to receive quarterly cash distributions from the second year and an estimated 85 per cent total return over five years through income and capital growth.
