On-site commercial property auctions are back with a bang, with a Mentone commercial site selling for $2.385 million - a remarkable $900,000 above reserve.
Fitzroys’ Chris Kombi and Tom Fisher sold 111-113 Mentone Parade to a local investor after heated competition between multiple bidders.
The 505sqm site has two shops that cover less than 40% of the property, and is located within a favourable Activity Centre zone.
It was offered with a flexible lease profile and holding income from Morris Meats and sold and on an incredibly sharp 1.9% yield on a fully-leased basis, and a high land rate of $4,722 per sqm for this section of Mentone.
Kombi said the buyer will hold the property as an investment given its location in the heart of the Mentone retail and lifestyle precinct.
“A quality location is a timeless fundamental,” Kombi said.
“Properties in growth suburbs continue to be highly sought after by investors, owner-occupiers and developers alike, and we had interest and competition across all buyer profiles for this property.”
He said that as well as the excellent upside and potential of property itself, the property is located just metres from the new Mentone train station and Mentone Community Piazza project, Coles and Woolworths supermarkets, and national retailers and popular eateries, while it offers dual frontage to Mentone Parade and a large council car park at the rear.
Fisher added, “Melbourne’s commercial property market has hit the ground running since coming out of lockdown.”
“There remains huge pent-up demand for retail assets after an extended period of low availability. We have yet more evidence that buyers are not deterred by the shift in environment when it comes to pursuing the opportunities when they do arise.”