A generational opportunity is on offer to secure four adjoining freeholds in the absolute prime of arguably Australia’s most famous shopping strip.
Fitzroys’ Mark Talbot and David Bourke are marketing 587-593 Chapel Street, South Yarra, near the high-profile intersection of Toorak Road, for sale as a whole by auction on Wednesday, 13 April at 1pm.
Talbot and Bourke are representing long-term family owners. Expectations are of $5.5 million-plus.
“There’s huge potential here for investors, part owner-occupiers, value-add players and developers,” Talbot said. “It’s incredibly rare to find an opportunity as versatile as this, let alone in the absolute prime of arguably Australia’s most famous shopping strip. Buyers can continue with the current income stream, part-occupy, reposition, or redevelop the site.”
The prominent property comprises four freehold buildings totalling 400sqm on four separate titles spanning 354sqm of Activity Centre-zoned land, just metres from the high profile intersection of Chapel Street and Toorak Road. It has a substantial 14.6m of frontage to Chapel Street and rear access from Penny and Pattison Lane, entered from both Chapel Street and Toorak Road.
The property is currently leased to three tenants - Jumi’s Cafê, Bisonte, and Green Cup - returning $157,349 per annum plus outgoings and GST.
Talbot said investors will note the rental upside potential, with the return able to be enhanced by leasing the sole vacant shop, and scope for further rental growth given the influx of new residents and workers to the area.
“Owner-occupiers have the ultra-rare chance to secure their own premises in the prime of Chapel Street, South Yarra.
“The lease terms also allow the purchaser to reposition the property in the medium-term.
“The property can be used as a generational landbank during a transformative period for one of Melbourne’s busiest suburbs. Developers and value-add players will note the property’s prized Activity Centre zoning. The high-density Forrest Hill precinct - one of Melbourne’s fastest-growing areas - is metres away and will give buyers a lot of ideas.”
Bourke said Chapel Street is regarded as one of Melbourne’s premier lifestyle and entertainment strips and is renowned for a long and diverse list of retailers and trendy food and beverage operators, surrounded by a rapidly growing residential and commercial catchment.
“South Yarra is undergoing a transformative period that is bringing new residential, retail, office, and hospitality offerings, and is being regenerated as a commercial and lifestyle destination in its own right,” Bourke said.
Newmark Capital, Gurner and Qualitas are currently planning the $1.5 billion Jam Factory redevelopment, while Vicland recently completed the 11 Wilson Street office building, Goldfields is developing a new office tower at 627 Chapel Street, and US company Greystar is planning Australia’s biggest build-to-rent project in the suburb.
Dahua, Simonds and Spotlight are all developing apartment projects in the suburb too.
Bourke added that the suburb’s easy accessibility by car and all modes of public transport has further made it an attractive proposition for residents and businesses.