204 & 204a Buckley Street, Essendon
An interstate investor bought the fully-leased property for $1.41 million. There are 2 commercial leases in place, including a 5+5-year lease to Fairway Dry Cleaners, and a 2-year lease at the rear dwelling.
43-45 Spensley Street, Clifton Hill
A self-managed super fund investor bought the 113sqm building for $1.21 million, on a 4.9% yield. It is occupied by wine bar and eatery Spensley’s on a 4+4 year lease.
147 Bourke Street, Melbourne
An investor paid $5.5 million for the 2-level, 245sqm building, which is occupied by Japanese restaurant Dohtonbori.
2 Walmer Street, Abbotsford
A local investor paid $1.07 million for the 131sqm property. It is located at the bottom of Salta’s Riverbank – The Park House development.
A multinational electronics importer paid $6.5 million for brand new 1,951sqm office and warehouse facility, which is on 3,000sqm of land with 30 car parks.
123-127 Buckhurst Street, South Melbourne
Previously occupied by a premium car retailer and sourcer, the 570sqm sawtooth warehouse will be converted into a photography studio after selling for $4.8 million.
43 Horne Street, Campbellfield
The 800sqm building, comprising 2 warehouse units, on 1,342sqm of land sold for $1.9 million. Unit 1 is leased on a monthly basis, returning $40,000pa plus GST and outgoings, and Unit 2 until late October at $28,348pa.
19/5 Bridge Street, Newtown
The vacant 290sqm warehouse property was bought by a local owner-occupier for $1.15 million.
31/31-39 Norcal Road, Nunawading
The 112sqm office and warehouse unit with 2 on-site car spaces sold for $588,000.
67 Korong Road, West Heidelberg
An expanding cabinet-making businesses leased the 492sqm office and warehouse in a 5+5-year deal at $65,000pa net.
All Eyes On Prized Burke Road Investment
Melbourne’s prime shopping strip market will head to Burke Road, Camberwell for its next test, with a dual-tenanted freehold occupied by Specsavers and Woodfrog Bakery going to auction later this month.
Fitzroys’ Chris James, David Bourke and Ben Liu are marketing 570-572 Burke Road, Camberwell which will go to auction on Thursday, 26 September at 2pm on-site.
The 2-level dual-fronted building of 403sqm is occupied by international brand Specsavers on a 10+5-year lease and the popular Woodfrog Bakery on a 5+5-year lease, returning a fully leased income of $283,359pa plus outgoings and GST.
Expectations are of circa $4.5 million.
The property is on a premium landholding in the absolute prime of Camberwell Junction, surrounded by national retailers including Country Road's new flagship store, Sportscraft, T2, Priceline, Kathmandu, Mecca, Mountfords Shoes and Frankie4. The property’s Market Place frontage is directly across from the Camberwell Fresh Food Market and a major car park, and forms part of a vibrant hospitality precinct that features Laurent, cafe My Other Brother (MOB Camberwell), and more.
“Prime Melbourne shopping strip assets with strong lease covenants represent excellent buying at a time of share market and residential market volatility.” James said.
“This is a rare opportunity to acquire a dual-fronted freehold investment with an excellent tenancy profile and secure income streams, located in the prime trading section of Camberwell Junction.
“Few assets in the heart of famous Burke Road, Camberwell come to the market, and when they do they are highly sought after.”
Liu said Burke Road, Camberwell has been the beneficiary of medium and high-density development, which has boosted the established, affluent catchment and underpinned trade.
He noted that Council activity is promoting further developments on and around Burke Road and Camberwell Junction.
A new 12-storey residential building has just been given the green light by the City of Boroondara at 699 Burke Road, which will bring 36 new apartments to the strip. The Council also has a plan allowing for more higher-density residential development around Camberwell Junction that would deliver 1,500 new apartments housing 3,500 new residents to 2051.
“Camberwell is seeing strong population growth and already has a broad demographic profile and robust house prices, underpinning high spending power. This ongoing generational renewal will provide further support for trade, activity and rental growth along Burke Road over the long-term,” Liu said.
Camberwell has also emerged as a premium inner suburban commercial office location, which is attracting workers throughout the day and further driving trade.
“Well-connected locations with thriving hospitality, shopping and lifestyle offerings as well as offices are attracting workers and new residents,” Bourke said.
“Camberwell Junction is well-serviced by trams along Burke Road and Riversdale Road, as well as Camberwell Station, providing easy access to the surrounding suburbs and Melbourne’s CBD,” Bourke said.
Standout Investment Leased to Iconic Café
Investors have the chance to acquire a suburban Melbourne investment occupied by a neighbourhood institution, located in an established and affluent suburb offering excellent trade fundamentals.
Fitzroys’ Chris Kombi, Lewis Waddell and Ben Liu are marketing 1491-1493 Malvern Road, Glen Iris, which will go to auction on Wednesday, 18 September at 1pm.
The 224sqm property is occupied by longstanding iconic café Mr Foxx, on a brand-new 6+6-year lease returning $104,200pa plus GST with fixed annual rental increases, with the tenant paying all usual outgoings.
“Melbourne’s high-quality suburban cafés have been trading strongly in recent times, as flexible working arrangements see more people spending time in their local villages and communities,” Kombi said.
“This is an excellent opportunity to buy a secure investment leased to a renowned tenant, in a strategic location within a highly affluent catchment that draws patronage from Toorak, Malvern and Armadale, all of which have a high-spending socio-economic profile.”
Waddell said Melbourne’s shopping villages have been supported by the introduction of new residential developments.
“Malvern Road has undergone a significant change in recent times, with the completion of numerous medium density apartment and mixed-use developments underpinning the future viability of the commercial precinct - and there are further high-rise developments planned for the area,” he said.
“There’s clear demand for that residential product. Glen Iris’s array of dining, shopping, and recreational options is enhancing its appeal for professionals, families and a growing cohort of young professionals, which is further boosted by its high connectivity by road, train, and tram.”
The corner site has a huge combined frontage of almost 60 metres to Malvern Road and Creswick Street, and with Commercial 1 zoning also offers long-term value-add potential.
Liu said the 1491-1493 Malvern Road property is within walking distance to both Tooronga and Gardiner train stations and tram services at the doorstep, and is located just seven kilometres from Melbourne’s CBD with convenient access to CityLink/Monash Freeway.
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.