626 Burke Road, Camberwell
A local private investor paid $5.081 million on a 3.6% net yield for the 261sqm dual-fronted freehold. It has new 6- and 5-year leases to national footwear brand Frankie4 and Lucky Well Tattslotto respectively.
90 Centennial Boulevard, Curlewis
A private investor paid $20.2 million for the 4,400sqm Woolworths-anchored neighbourhood centre with 7 specialty shops, on a 5.67% passing yield. Other tenants include BWS, Pharmacy 4 Less and Curlewis Medical Centre.
520-522 Malvern Road, Prahran
An investor bought the 2-level building, totalling 174sqm of floor space across 2 shops and a residence on a 229sqm site, for $2.038 million. Current return is $123,328pa.
320 Main Road East, St Albans
A local investor paid $1.81 million for the 220sqm building, which is occupied by Vietnamese restaurant Tra Vinh with a brand-new 5+5-lease starting in October, returning $75,000pa plus GST.
99 Queen Street, Melbourne
Developer and publisher Morry Schwartz acquired the 12-storey B-grade building for $16 million. It has 4,153sqm of floor area and is on a 508sqm block.
Suite 2.10, 202 Jells Road, Wheelers Hill
An owner-occupier bought the 45sqm office for $275,000.
24 Lillee Crescent, Tullamarine
Offered with vacant possession, the 1,100sqm warehouse with cool room, on a 3,941sqm site, sold for $5.4 million.
14 Fink Street, Preston
A concreting company leased the 520sqm office and warehouse in a 3+3-year deal at $84,000pa net plus GST.
180 Grange Road, Alphington
European and British vehicle repairs and servicing specialists Pickards Automotive leased the 320sqm brick warehouse in a 3+3-year deal at $48,000pa net plus GST.
117-119 Thistlethwaite Street, South Melbourne
The 575sqm 2-level office, warehouse and showroom was leased at $120,000pa.
33-41 McKillop Street, 36-40 Little Myers Street & 107 Gheringhap Street, Geelong
A local Geelong buyer paid around $20 million to Geelong Bank and GForce Employment and Recruitment for the 7,111sqm site.
327 High Street, Ashburton
A local developer paid $1.89 million for the 813sqm site, which has a permit for 6 high-end apartments.
Huge Auction Result for Former Glenroy Library Site
Melbourne’s commercial property market has seen another strong auction result, with the former Glenroy Library site selling under the hammer for $4 million, smashing the reserve.
Fitzroys’ Ervin Niyaz and David Bourke sold 737 Pascoe Vale Road, Glenroy on behalf of Merri-bek Council. It marked the first time the property had been offered for sale in 54 years.
The vacant property was surplus to Merri-bek Council’s needs, following the relocation of its Library to the newly-built Glenroy Community Hub.
The property comprises an open-plan, self-contained single storey building, previously utilised as a library, on a 1,831sqm Commercial 1-zoned site with frontage of more than 45 metres to Pascoe Vale Road.
The campaign run by Niyaz and Bourke generated more than 70 enquiries from across Melbourne and Australia, resulting in 17 inspections and fierce competition between five bidders on auction day.
“The buyer is an interstate investor looking to value-add and repurpose the asset with a suitable tenant,” Niyaz said.
“Not a lot comes up for sale in the area, and the purchaser had an occupant in mind which this site could suit.
“The campaign generated large interest from a very broad range of buyer types. We had several international fast food restaurants in the enquiries, as well as gyms, childcare operators, mixed-use developers, community groups and religious groups.
“There was a clear confidence from occupiers despite the current high cost of debt.
“Not many opportunities like this come to market - particularly assets of this type being divested by Council. It could be another 50-plus years until another sizeable asset in this tightly-held Activity Centre is made available.”
Bourke said the market noted the property’s location in an established neighbourhood with strong fundamentals, with Glenroy train station and bus services within just a few minutes’ walk, while nearby are the M80 Ring Road, major roadways and ample public parking, a number of schools and education centres, and a strong retail and commercial offering.
He added, “Melbourne’s commercial property market is really coming back to life as we head into spring, evidenced now by a number of strong auction results in the past couple of weeks.”
Fitzroys has also just sold under the hammer the dual-tenanted retail property 626 Burke Road, Camberwell, anchored by national footwear brand Frankie4, for $5.081 million - nearly $1 million over the reserve and on a sharp 3.6% yield - as well as the Commonwealth Bank branch building at 133 Acland Street, St Kilda, for $4.4 million, at a tight 4.9%.
“Just these 3 auction campaigns show there is more than $60 million worth of unsatisfied capital across investors and owner-occupiers alike looking to well-located Melbourne opportunities,” Bourke said.
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 2023 Fitzroys.