452 & 452a Centre Road, Bentleigh
A local investor bought the 220sqm 2-level building for $2.1 million on a 3.6% yield, prior to auction. The property has a 3 year lease to local butcher and is on a 200sqm site.
64 Dandenong Road West, Frankston
An investor paid $2.145 million for the 425sqm large format retail building, which has been occupied by paint company Dulux for more than 25 years. Dulux has a renewed 5-year lease with a 5-year option, returning $101,870pa plus GST.
68 Menzies Avenue, Dandenong
The 215sqm corner landholding sold for $1.51 million, on a 6.5% yield. Lyndale Pharmacy has a 7+7+7+7-year lease to 2049, and Blue Whale Coin Laundry’s 5-year lease runs to 2027 with options 2037, for a total return of $98,217pa plus GST.
649A Chapel Street, South Yarra
An investor paid $492,000 for the 40sqm retail space, which is occupied by Barber of South Yarra on a 3-year deal to 2027.
16 Northpoint Drive, Epping
National tool wholesaler and distributor Industrial Tools & Machinery is more than doubling its footprint in Melbourne, buying the 2,132sqm facility for $7.1 million.
66 Cecil Street, Fitzroy
A local owner-occupier with plans to refurbish bought the 277sqm warehouse on a 253sqm corner site for $2.325 million.
68 East Esplanade, St Albans
The 250sqm building on a 1,024sqm Industrial 3-zoned site sold for $1.29 million.
8/33-35 Commercial Drive, Thomastown
The 314sqm high-clearance warehouse sold for $770,000.
Investors have the chance to buy the high-profile home of one of the most buzzing hospitality and live music venues in Lygon Street, Brunswick East - which was recently declared by Time Out as one of the “World’s Coolest Neighbourhoods” and continues to move through a generational growth phase.
Fitzroys’ Chris Kombi and Ervin Niyaz are marketing 78-80 Lygon Street, home to bar, burgers and bands venue The Beast, by auction on Thursday, 5 December at 2pm.
Expectations are of $3.4 million-plus.
The high-profile property comprises two double-storey shops on one title with a combined building area of 620sqm, encompassing multiple seating zones, bar and commercial kitchen, dance floor, and live music stage.
It boasts a commanding street frontage of 12.26m and is on a valuable inner city land holding of 373sqm, with access from a rear laneway.
The property has a secure 10-year lease with options to The Beast which returns $185,657 per annum plus GST (as at 17 January 2025), with fixed annual increases.
“This is a quintessential set and forget inner-north Melbourne commercial property investment,” Kombi said.
“Lygon Street, Brunswick East is one of Melbourne’s famous buzzing inner-north nightlife and lifestyle strips, and The Beast has been a mainstay contributor to the area’s vibrancy for more than a decade.
The property is in pole position within East Brunswick’s renowned food and beverage precinct, which global publication Time Out recently named among its “Coolest Neighbourhoods in the World” - surrounded by an array of dining and nightlife institutions drawing consistent and loyal patronage from across wider Melbourne. Nearby are renowned pizzeria 400 Gradi, Lebanese eateries Téta Mona and Mama Manoush, and popular bars including Old Palm Liquor, The Alderman, Eydie’s, and Maggie’s Snacks & Liquor - among many more.
According to Fitzroys' new Walk the Strip report, Lygon Street, Brunswick East has a low vacancy of just 3.7%.
“The surging location has in recent years seen a number of residential towers completed in the proximity, which has boosted the immediate catchment and trade.
The precinct is set to benefit from yet further planned high-density residential development in the area,” Niyaz said.
He said Melbourne’s shopping strips are experiencing a real period of renewal at the moment.
“More Melburnians have embraced flexible working arrangements in the post-pandemic period, 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.
Recently, Fitzroys sold 98-100 Lygon Street, home to Maggie’s Snacks & Liquor, for $3.38 million, on a 4.7% yield, after a campaign that generated more than 70 enquiries and attracted several bidders. The agency also recently sold 113 Lygon Street, Brunswick East for $1.3 million, on a 4.5% net yield following another successful auction campaign.
CBD Hungry Jack’s Site Sells for $60m
Yulong Investment’s Yuefang Zhang has acquired the Hungry Jack’s-anchored Melbourne CBD site at the corner of Elizabeth and La Trobe streets for more than $60 million.
The 368 Elizabeth Street site spans 1,518sqm and has a 6-level, 5,680sqm building with a Hungry Jack’s restaurant on the ground floor and offices above. The lease contain clauses that allow for redevelopment.
Landream was the vendor of 368 Elizabeth Street. Earlier this year it sold the 1,693sqm site at 100-106 Franklin Street, near the Queen Victoria Market, to Brookfield Asset Management for $61.25 million. The site will be used for a purpose-built student accommodation tower.
Terraplex Picks Up Noble Park Warehouse Development
Anthony Wilson’s investment group Terraplex has acquired an industrial development from Lendlease for $44.6 million.
On 4.04ha of Commercial 2-zoned land, the 22,084sqm development at 450-466 Princes Highway comprises 10 units.
Terraplex on-sold 3 of the units prior to settlement at a 44% premium to the purchase price.
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.