A showroom and logistics island site in Epping has come to the market, offering investors and land bankers a premier opportunity to be a part of the suburb’s incredible growth story.
Fitzroys’ Paul Burns and Chris James are marketing 88 Cooper Street and 100 Cooper Street separately or in one line via Expressions of Interest closing 3 December.
On offer is 1.35 hectares of land with a 470-metre street frontage, located directly opposite the Pacific Epping regional shopping center and in the heart of Epping Central, the priority investment area within the City of Whittlesea.
The 9,254sqm site at 100 Cooper Street has a new 10-year lease (commenced July 2021) to Jowett Motor Group, operating as Northern Honda. The improvements are part-new and part fully-refurbished purpose-built automotive dealership and logistics warehouse totalling 3,860sqm. Annual net return is approximately $730,000 per annum.
Northern Honda is the consolidation of a number of Honda dealerships, with the logistics component distributing Honda parts to the majority of metropolitan Melbourne.
88 Cooper Street comprises a modern 1,721sqm three-unit showroom on a 4,228sqm site with associated parking. It is fully leased to long-term tenants Burson (part of ASX-listed Bapcor Limited), GPC Asia Pacific’s NAPA and popular supermarket chain MKS Spices’n’Things, returning $360,000 net. The 2005-constructed building was recently upgraded and has a 4.5-year WALE.
Combined, the entire property returns approx. $1.1 million per annum net, with an 8.1-year WALE. The buildings have been upgraded at a total cost of circa $4.5 million.
“Epping is undergoing a generational boom, and Cooper Street has recently emerged as the major commercial hub of the northern suburbs. The area has seen enormous development and growth, and it promises further long-term intensification projects. It’s quite remarkable what’s taking place,” Burns said.
“This property presents as the ultimate land bank. Here and now, it is an outstanding, secure investment opportunity. The longer-term potential is huge, with Council encouraging high-density commercial and residential development by way of the site’s Activity Centre zoning.”
In addition to Pacific Epping regional shopping center, major tenants fronting Cooper St include Melbourne Wholesale Fruit Vegetable & Flower Market, the Northern Hospital, Epping Private, Melbourne Polytechnic, the Mantra Hotel, Costco Supermarket and others large-format retail, medical and automotive showroom users including Mercedes, VW and Ford.
James said a number of major infrastructure, logistics, advanced manufacturing, and large format retail projects have recently been completed in Epping, with many more planned.
On Cooper Street alone, Riverlee has started work on the $2 billion mixed-use development at the former Epping Quarry, marking one of Australia’s largest urban renewal projects and including the Northern Private Hospital development, while Genesis Property recently bought a 1.63-hectare infill development site.
Throughout Epping, Sandhurst Retail and Logistics is planning a $500 million, 140-hectare industrial estate, and Mazda recently completed its 3.7-hectare national parts and distribution centre. The suburb has also attracted investment from ASX-listed players Charter Hall, Centuria Industrial REIT and large-format retail specialist Aventus.
James said the site offers excellent accessibility, an attribute that has become sought-after amid the boom in demand for logistics and warehousing.
“The property is connected to the Hume Freeway, Metropolitan Ring Road, Western Ring Road and Tullamarine Freeway, opening up access to the rest of Melbourne as well as Melbourne Airport,” he said.