A local investor has pumped $1.605 million into a fully leased multi-tenanted retail and office freehold occupied by the Australian Red Cross, as buyers look to take advantage of growth prospects through Melbourne’s eastern corridor in big numbers.
Fitzroys agents Chris Kombi and Terence Yeh sold 114 Main Street on behalf of a private investor following a campaign that generated 140 buyer enquiries.
On a land area of 298sqm, the Commercial 1-zoned site has a two-level building of 426sqm featuring three self-contained tenancies.
The property is anchored by Australian Red Cross Society on the ground floor with the building returning a combined return of $87,258 per annum plus outgoings and GST. The sale price reflected a blended yield of 5.3%.
“The property attracted strong interest from a range of buyers seeking to invest in a locality experiencing rapid growth with excellent future prospects for capital appreciation,” Kombi said.
“Croydon is a leafy, rapidly expanding locality currently enjoying a surge in property values, driven by demand for family friendly living and the excellent amenity that the area has to offer.”
Main Street is home to more than 160 traders and includes a number of national tenants as well as the Red Cross, including the four major banks, Woolworths, Coles, Aldi, Anytime Fitness, Subway and Flight Centre.
Yeh said the Croydon town centre has been designated as a Major Activity Centre via the Melbourne metropolitan strategy plan, becoming a focal point for continued development and growth in the region. Some $2 million has been allocated to the Council’s capital works budget for upgrades within the Activity Centre, including a new town square just 60 metres from 114 Main Street.
The City of Maroondah has also created a Croydon Major Activities Area Development Policy and The Croydon Town Centre Structure Plan.
Last month, Fitzroys sold a substantial multi-tenanted corner retail site of 1,423sqm in nearby Ringwood North for $3 million to a private syndicate. Banking on the growth of the eastern suburbs, the new owners will lease out the remaining vacant retail space and look to develop in the future.