Chapel Street Transformation Rings Out
Growing spending on food and beverage throughout Chapel Street has attracted the world’s largest Mexican restaurant chain, Taco Bell, to the famous lifestyle shopping strip.
Fitzroys agents James Lockwood and Lewis Waddell leased the 320sqm, fully-fitted space at 352 Chapel Street, South Yarra to the US-based food giant, on behalf of a private investor. The site is due to open by the end of the year and marks the launch of the chain in Melbourne.
Lockwood said the interest in the property generated throughout the global campaign and by Fitzroys’ international contacts demonstrated the high regard in which Chapel Street is still held by major operators across Australia, as well as abroad.
He said Taco Bell is looking to capitalise on the recent influx of spending within the area, and recognised the growth prospects that the growing residential and worker population offered Chapel Street.
“Residential and commercial development in the area has both increased and prompted a shift in the immediate catchment’s demographics, which has brought a higher spend on food and beverage.”
He said Melburnians continue to embrace inner-city living and are increasingly looking to live, work and go out in and around the city, reflected in the development of the high-density Forest Hill precinct nearby and a pipeline of projects that includes the $1.25 billion Jam Factory overhaul, the soon-to-be-completed Capitol Grand and W Hotel, and new office builds at 627 Chapel Street and Chapel Plaza at 402 Chapel Street.
“Taco Bell is well-placed to offer its world-famous Mexican-inspire cuisine throughout the day to the growing worker population, in the evening to local residents, and the nightlife crowd that descends on the length of Chapel Street.
“Chapel Street remains the busiest club, bar and dining precinct of any of Melbourne’s retail strips south of the Yarra, and draws visitors from across Melbourne.”
Taco Bell serves 2 billion customers each year at more than 7,000 restaurants across the world.
“Taco Bell wanted to secure an address in one of Melbourne’s - and Australia’s - most famous shopping and lifestyle precincts for its debut in the city,” Waddell said.
Waddell said hospitality groups made strong enquiry throughout the campaign, with the property offering a full hospitality fit-out and kitchen infrastructure. The enquiry demonstrated a clear appetite from food and beverage traders to secure a site on Chapel Street and the surrounding areas and tap into the growing local population and be a part of its transformation.
According to Fitzroys’ latest Walk the Strip, Chapel Street, South Yarra vacancies came down from 18.1% to 15.6% throughout 2018/19.
Taco Bell’s other Melbourne store will be at 650-652 Glenferrie Road, where it has leased a 148sqm space at $150,000pa net.
CBD Buildings Change Hands
Private owners have traded a 3-storey office building next to the Queen Victoria Market’s Munro site for around $17 million.
Fitzroys Director, Rob Harrington handled the off-market sale of 104 Franklin Street in conjunction with Colliers International.
The 1,666sqm building is leased to an education tenant, and is on a 677sqm site that will have direct access to the market via a new adjacent laneway on completion of the Munro site redevelopment.
Plans for the Munro site, which covers 6,500sqm, include two towers of 38 storeys and 10 storeys being developed by PDG, which will include 490 build-to-rent units to be ultimately owned by Mirvac, and a hotel.
On Bourke Street, the owners of adjoining older-style CBD buildings have sold the properties for the 1st time in 40 years for a combined $11.17 million.
The 417sqm, 4-storey building at 418-420 Bourke Street, home to menswear retailer Peter Jackson on the ground floor, sold for $5.57 million. Next door, the 2-storey 238sqm building at 422-424 Bourke Street changed hands for $5.6 million.
Richter Portfolio Nets More Than $25 Million
Apartment blocks across Melbourne and a Northcote warehouse owned by criminal lawyer Robert Richter, QC have sold for a combined $25.311 million.
The 7 properties included 8 James Street and 499 Station Street in Box Hill, which sold for $6.66 million and $1.701 million respectively, as well as sites in Ascot Vale, Essendon Glenroy, Fawkner and Chadstone.
Grandather’s Axe, a Danish secondhand furniture firm, occupies the Northcote property, 171 High Street which is zoned Industrial 3 and sold for $3.215 million at a 4% yield.
Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys. Terms/Privacy © Copyright 2019 Fitzroys.