109 Acland Street, St Kilda
The 211sqm 2-level building on a 110sqm site sold for $1.5 million. It has a 5 5 5-year lease to restaurant Buddha Culture.
2 Lakeside Link, Pakenham
A local investor paid $6.7 million, on a 5.41% yield, for the brand-new 1,413sqm showroom building on a 3,164sqm site. It is occupied by Petbarn and Trek and returns $363,004pa plus GST.
117 Brunswick Street, Fitzroy
An architect acquired the older-style 260sqm, 2-level building for $2.2 million, with plans to create an architectural studio and art gallery. The building is on a 372sqm triple-fronted corner site.
97 Charles Street, Seddon
An owner occupier bought the 165sqm shop and dwelling on a 256sqm site for $975,000.
14 Adakite Drive, Berwick
An investor paid $615,000 on a 5.55% yield for the 49sqm property. The Wheels Café has a new 10-year lease to 2034 with options to 2044 that brings $34,150pa plus GST.
219 Moray Street, South Melbourne
A Sydney-based buyer acquired the 241sqm, 3-level building, which is on a 108sqm Commercial 2-zoned site, for $1.5 million.
1 England Street, Dandenong South
The 1,270sqm industrial facility on a 3,648sqm site sold for $5.025 million, on a 5.97% yield. National drainage services company Rangedale Drainage has a new 5 5-year lease returning $300,000pa plus GST.
6 Lillee Crescent, Tullamarine
The 905sqm office and warehouse sold for $2.955 million with a leaseback until March 2025. It is on a 1,200sqm Commercial 2-zoned site with 11 car parks.
The 28.6ha Green Wedge-zoned landholding sold for $3.9 million.
The strong finish to the year for Melbourne’s shopping strip investment market has seen a record result achieved on one of its most established strips.
Fitzroys’ Chris Kombi, Ben Liu and Lewis Waddell sold the retail and residence/office property at 222 Glenferrie Road, Malvern prior to auction for $3.2 million, on a land rate of $16,667/sqm that is likely to be a record for the strip.
The ground floor is leased to national retailer Australian Red Cross on a new 5-year term and there is a separately-leased first-floor 4-bedroom residence/office.
The offshore buyer was sourced from Fitzroys’ database who put forward a knockout offer prior to the scheduled auction.
“The private investor was seeking a securely-leased asset in a blue-chip shopping strip,” Kombi said.
“We’ve seen more investors turn to quality Melbourne shopping strip assets for security at a time of share market and residential market volatility.
“This is result is yet another great sign of the health of the market, and follows a number of strong results.”
Waddell said Glenferrie Road’s low vacancy rates and quality mix of local and national operators have cemented its position as one of Melbourne’s most consistent strips.
Headlining Glenferrie Road’s tenancy mix are all major banks, Coles supermarket, Dan Murphy’s, and Australia Post, complemented by Glick’s Bakery, Fleischer Cakes, kosher butchers and deli and small goods retailers.
“Glenferrie Road has for a long time served a broad, affluent catchment that has underpinned trade throughout all hours of the day,” Waddell said.
According to Fitzroys’ latest Walk the Strip report, Glenferrie Road vacancies tightened over the past year to 6.6%.
Liu said Fitzroys has now sold a number of Melbourne shopping strip assets prior to auction in recent weeks.
“Fitzroys has been using its extensive investor database and networks to source strong interest from investors, and create a competitive tension that has led to very strong results ahead of auction day,” he said.
Fitzroys recently sold prior to auction the home of Lygon Street, Brunswick East’s famous “The Beast” bar, burgers and bands venue within just 21 days of the property being put to the market, for $3.75 million, as well as 452 & 452a Centre Road, Bentleigh, occupied by a butcher, for $2.1 million and on a sharp yield of 3.6%.
Fitzroys has negotiated a number of key sales across Melbourne’s shopping strips more generally in recent months. It has also sold 342 Brunswick Street, Fitzroy, home to Blackout Lounge, to an investor for $1.85 million on a 4.6% yield, following on from the sale of 340 Brunswick Street next door to another investor, for $1.72 million on a tight 4.3% yield.
Other recent key shopping strip sales by Fitzroys have included the Specsavers and Woodfrog Bakery-tenanted 570-572 Burke Road, Camberwell for $4.88 million, well above expectations; nearby 626 Burke Road, anchored by Frankie4 and which sold for $5.081 million - at $1 million above reserve - on a sharp 3.6% yield, and now 668 Burke Road, home to Hairhouse Warehouse on another sharp yield of 3.9%.
The agency has also sold home of the Commonwealth Bank branch at 133 Acland Street, St Kilda for $4.4 million, $300,000 beyond reserve, joined this month by 109 Acland Street, St Kilda for $1.5 million; while 48 Church Street, Brighton, securely leased to Bed Bath N’ Table, was sold on another tight yield of 3.6% yield.
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.