In another sign of the health of Melbourne’s shopping strip investment market, separate investors have bought two adjoining Brunswick Street, Fitzroy shops in a strong set of results.

Fitzroys’ Chris Kombi, Ervin Niyaz, Ben Liu and Shane Mills sold 340 Brunswick Street, Fitzroy - the birthplace of international tea brand T2 - as well as the next door Blackout Lounge at 342 Brunswick Street.

The properties had been held within the same four families since 1976.

340 Brunswick Street comprises a beautifully presented 260sqm two-storey building and sold for $1.72 million, on a tight yield of 4.3%.

Next door, 342 Brunswick Street comprises a fully activated 330sqm two-storey building and sold for $1.85 million, at a 4.6% yield. Blackout Lounge is an acclaimed bar and wood-fired pizza and Middle Eastern cuisine restaurant, and a popular part of Brunswick Street’s nightlife scene.

The classic buildings are in a sought-after position in the centre of the famous Brunswick Street, Fitzroy hospitality, entertainment and lifestyle precinct.

“The properties represented a generational opportunity to acquire a prime Brunswick Street, Fitzroy investment, located in the absolute heart of one of Melbourne's most vibrant hospitality and lifestyle strips,” Kombi said.

“These strong results are another vote of confidence in Brunswick Street. They also show the healthy demand out there for quality Melbourne shopping strip retail assets.

“The market has really come to life this Spring and we’re seeing more investors turn to quality Melbourne shopping strip assets for security at a time of share market and residential market volatility,” Mills said.

Niyaz said, “Investors were attracted to the strong cashflow from quality tenants, with great rental uplift and value-add prospects in the coming years. There’s consistently strong competition between tenants for space along he prime trading section Brunswick Street. We saw a number of investors in these campaigns looking to get a foothold in the high- performing strip.”

The investors intend to hold the properties as passive investments, he added.

Vacancies on Melbourne’s archetypal inner north hospitality and lifestyle strip are well below the long-term average as Melburnians again embraced shopping, dining and eating out.

According to Fitzroys’ most recent Walk The Strip report, vacancies on Brunswick Street, Fitzroy now sit at just 5.1%, having sat at 12.2% during the COVID period.