Investors are continuing to buy up property in high-performing Lygon Street, Brunswick East, declared by Time Out as one of the “World’s Coolest Neighbourhoods” as it moves through a generational growth phase.
Fitzroys’ Lewis Waddell and Ervin Niyaz have sold 113 Lygon Street, Brunswick East for $1.3 million, on a tight 4.5% net yield following a successful auction campaign.
Waddell said the campaign generated 60 enquiries, which culminated in four bidders competing for the property at auction.
The 150sqm building is occupied by multi-store tenant Tips and Toes on a brand-new five-year lease, on a 152sqm site located in the absolute prime trading section of the strip, surrounded by top hospitality operators and local retailers including 400 Gradi, Old Palm Liquor, Bar Idda, Maggie’s Snacks & Liquor, Bed Bath N’ Table, Messina, IGA and many more.
“Investors recognised the rarity of the opportunity to acquire a securely-leased freehold in a prime inner-city shopping strip, leased to a quality tenant,” Waddell said.
The sale follows Niyaz and Fitzroys’ Chris Kombi and Ben Liu selling 98-100 Lygon Street for $3.38 million, after a campaign that generated more than 70 enquiries and also saw four bidders competing at the auction. That sale price reflected a tight 4.7% net yield. The property has a 10-year lease plus options to highly-experienced hospitality operators trading as popular new venue Maggie’s Snacks & Liquor.
Waddell said Lygon Street, Brunswick East is home to an array of hospitality institutions that draw consistent and loyal patronage from the neighbourhood and across wider Melbourne.
“The strip has really emerged to become part of Melbourne’s world-famous inner north hospitality and culture offering.
Brunswick East was recently ranked by influential global publication Time Out as sixth on its list of “Coolest Neighbourhoods in the World”.
Niyaz said Melbourne’s shopping strips are experiencing a real period of renewal at the moment.
“Multiple residential towers in around Lygon Street, Brunswick East have boosted the captive local catchment and local trade, which will benefit further in the coming years from more residential development in the pipeline,” he said.
“More people have embraced flexible working arrangements in the post-pandemic environment, looking to work closer to home in highly-accessible locations with quality hospitality and lifestyle amenity.”
The location also offers excellent connectivity and exposure with trams 1 and 6 stopping directly outside the property and 22,000 cars passing by daily.