27A Anderson Street, Yarraville
A locally-based investor paid $1.615 million for the strata-titled property, on a 4.2% yield. The 132sqm building is occupied by Mexican restaurant chain Zambrero on a 7+5+5-year deal.
142-146 Ocean Beach Road, Sorrento
Comprising 3 retail spaces, including boutique accommodation offering Carmel at Sorrento, and 7 apartments, the 1,547sqm mixed-use property sold for $10.15 million.
5533 and 5535 Princes Highway Traralgon
An investor bought the adjoining car dealership sites for $5.4 million and $5.6 million. Respectively, they sold on a 6.53% yield with 3 years remaining on a leased to a Mercedes-Benz dealership, and on a 6.55% yield with 4 years left on a lease to an MG, Suzuki, Jaguar and Land Rover dealership.
39 Whitehorse Road, Deepdene
An owner-occupier bought the corner retail building, on 227sqm of land, for $1.2 million with plans to refurbish the property and operate a restaurant.
Shop 8, 213 Bay Street, Port Melbourne
A local investor bought the 83sqm property for around $988,000. It has a lease to YPA Real Estate returning $65,653pa plus outgoings and GST.
468 St Kilda Road, Melbourne
Australian Unity Office Fund sold the 11,210sqm, 14-level building, from which it will net $41.75 million in proceeds.
150 Burwood Road, Hawthorn
An owner-occupier bought the 333sqm building on a 273sqm corner site for $2.05 million, with plans to establish a new medical clinic.
3 Millennium Court, Knoxfield
ASX-listed Growthpoint divested the 8,040sqm office and warehouse for $22 million. It is on a 14,750sqm site and is occupied by Opal Packaging, and has a weighted average lease expiry (WALE) of 1.7 years as at the end of June.
12/54 Merrindale Drive, Croydon South
Located at the front of the former ICI research station site, the 253sqm office and warehouse unit sold for $950,000 to a local owner-occupier in the construction sector.
10/322 Bay Road, Cheltenham
The 155sqm office and warehouse unit, with 2 on-title car parks, sold for $845,000, or $5,452/sqm.
Melbourne’s shopping strip market continues its storming run home for 2024, with the home of Brunswick East’s famous The Beast selling within just 21 days of being on the market as Fitzroys generated a knockout offer well ahead the scheduled auction.
Fitzroys’ Chris Kombi, Ervin Niyaz and Ben Liu sold 78-80 Lygon Street to a land banking investor for $3.75 million.
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 has a street frontage of 12.26m and is on a landholding of 373sqm.
The property has a 10-year lease with options to the bar, burgers and bands venue.
“This is a quintessential set-and-forget inner-north Melbourne commercial property opportunity, and the purchaser is a local investor who was attracted to the lease profile and the underlying land value,” Niyaz said.
“The market recognised this as an investment in pole position of Lygon Street, Brunswick East, one of Melbourne’s famous buzzing nightlife and lifestyle strips, with a secure lease to a strong-performing, long-standing tenant with a proven track record, as well as a generous land size for this type of asset.
“There’s clearly some really good market confidence for well-positioned, well-leased assets with credible operators at the moment.”
The renowned Brunswick East food and beverage precinct was recently declared by influential global publication Time Out as one of the “Coolest Neighbourhoods in the World”.
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.
Kombi said, “Ongoing residential growth in the area has boosted trade and led to minimal vacancies. This also served to create a competitive tension in the auction campaign, which saw a knockout bid offered just 21 days after the property came to market.”
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, and the precinct is set to benefit from yet further planned high-density residential development in the area,” Kombi said.
Liu said the growth of Brunswick East had been driven by more Melburnians embracing 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, 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.
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.