An incredible fully-leased investment and landbank opportunity on 1,570sqm of prized Kew land has come to the market.
Fitzroys David Bourke, Chris James and Ben Liu are marketing Walpole Hill, at 4-14 Walpole Street in the Kew Junction precinct, via Expressions of Interest closing Wednesday, 30th August at 2pm.
It marks the first time in 30 years the property has been available for sale.
Expectations are of circa $10 million for the property, which has 12 individual titles to be offered in one line.
The property comprises a dominant single-level building of 1,296sqm with 10 fully occupied shops and a rooftop car park accessed off Walton Street providing 46 spaces. It currently returns $422,700 per annum with excellent rental growth potential. Among the range of retail tenants are Jade Kew Restaurant, Buoy Pizza, Beejans Bakery Café, LivFit Physio Kew and Skin & Brows, with leases ranging from three to five years plus options.
Zoned Commercial 1, the property is on 1,570sqm of invaluable corner land in the Kew Junction precinct, with 47.74m of frontage to Walpole and 33.15m fronting Walton Street. It is opposite a strong-performing Woolworths supermarket and metres from the corner of High Street.
“This is an ultra-rare opportunity to secure a landmark property in a blue-ribbon suburb with excellent landbanking attributes, with an established cash flow and rental upside, and considerable future redevelopment potential,” Bourke said.
Its location within the Kew Junction Activity Centre and Design and Development Overlay 14 DDO14 allows for a building height of up to 18 metres (STPA) and uses including retail, residential, commercial and mixed use.
“Kew is widely recognised as one of Melbourne’s blue-ribbon suburbs, with an affluent and established catchment and high median house price that supports strong trade for retailers and operators. There’s also been significant medium-density residential development undertaken in the area, catering for downsizers as well as attracting a new generation of young professionals and families to its hospitality and lifestyle offering, particularly at a time of flexible working arrangements,” Bourke said.
“We’re again seeing more people gravitate to well-connected inner-city locations with high-quality hospitality and lifestyle amenity to live, work, shop and play. In turn, we’re also seeing a growing pull for businesses to establish offices in Melbourne’s inner east.”
James said Kew is serviced by all major trading banks, major supermarkets including Woolworths and local favourite Leo’s Fine Food & Wine, together with a host of recognised businesses including Chemist Warehouse, Flight Centre, Woodfrog Bakery, Endota Spa, Toscano’s and Bob Stewart, plus a wonderful food and beverage offering.
Major commercial offices already located in the area include tenants such as Roche, Hanes Brands, Bank First, Murdoch Partners Accountants, Henderson and Ball Solicitors.
The area is well-serviced by public transport, with Route 48 and 109 trams and multiple bus routes providing links to the CBD and wider metropolitan Melbourne, while there are several main arterial roads nearby including the Eastern Freeway to the north and CityLink to the south.
Liu said Kew is supported by strong demographic fundamentals, with a median house price of $2.81 million and median unit price of $802,944, while its population is forecast to grow by almost 20% by 2041.
He added that many of Melbourne’s leading private schools are located nearby, including Trinity Grammar, Ruyton Girls Grammer, Carey Grammer, Methodists Ladies College, Sacred Heart Primary School, Genazzano and Xavier College, and will continue to attract residents to the suburb.
Fitzroys recently sold the commanding hospitality building at 26-28 Cotham Road, Kew - formerly home to Hellenic Republic, operated by high-profile chef George Calombaris and his hospitality group Made Establishment - following an Expressions of Interest campaign that generated more than 70 enquiries. The $5,006,666 sale price reflected a sharp 3.1% net yield. The immaculately-refurbished 635sqm two-storey building has a 6+6+6-year lease to chefs Ayhan Erkoc and Federico Perez Lopez for their Cotham Dining restaurant and Nazar Wine Bar, both operating under the one lease.