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 in 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 three 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.
On Wednesday, 28th August, Fitzroys is auctioning two side-by-side Glenroy retail properties one after the other, through Niyaz and colleague Chris James.
They comprise the 105sqm building on a 238sqm site at 775 Pascoe Vale Road, offered with a lease to Mystique Creations, returning $25,740 per annum plus GST, and the 101sqm building at 777 Pascoe Vale Road, on 214sqm of land and leased to Chautari Meat Shop, returning $27,420 per annum plus GST.
Niyaz said the offering presents the opportunity to buy both properties with a combined site area of 452sqm, with strong rental growth potential in a high-profile position and with excellent activation into the rear council car park, surrounded by notable tenants including Coles supermarket, Cash Converters, Glenroy Newsagency, Commonwealth Bank, Direct Chemist Warehouse and more, and near the new Glenroy railway station.