Aggressive bidding under a scorching Melbourne sun has seen a strata investment, leased to a global fast food retailer in the heart of Yarraville’s thriving Anderson Street, sell in yet another very strong strip investment result.
Fitzroys’ Mark Talbot and Ervin Niyaz sold 27A Anderson Street, Yarraville on behalf of a private owner, with the sale price coming in at $1.615 million - some $115,000 above reserve, and on a tight 4.2% yield.
The property comprised a 132sqm restaurant that recently underwent a $300,000 fit-out and is leased to Zambrero, which has 300 restaurants worldwide, on a new 7+5+5-year lease.
“This was a sensational opportunity to acquire an investment with a new lease to a global fast food retailer, in the absolute prime of a bustling and highly desirable inner Melbourne shopping village,” Talbot said.
“Aggressive bidding from four groups after more than 50 enquiries led to a strong sale price and tight yield, particularly for a strata investment.
“The highly competitive auction and the strength of the result are another great sign of the health of Melbourne’s shopping village market.
“Investors continue to turn to well-located, well-leased Melbourne strip assets for security at a time of share market and residential market volatility.”
It is amongst a mix of local traders and national tenants including Woolworths Metro, Vintage Cellars, IGA Supermarket, Grill'd, Flight Centre, The Railway Hotel and more.
“The buyer is a locally-based investor who saw value in the popular Yarraville shopping village,” Niyaz said.
The property is strategically located only 50 metres from the highly popular Street Park of Ballarat Street, which has in recent times transformed the Anderson Street precinct into a highly walkable and accessible lifestyle and hospitality hub in Melbourne’s inner west, home to the famous Sun Theatre.
It is also just 150 metres to the Yarraville train station and bus interchange, and there is easy access to the CBD via the Westgate Freeway, while upcoming completion of the Westgate Tunnel project is expected to greatly reduced traffic congestion in the area.