Prahran’s complete package
173-175 High Street, Prahran
One of Melbourne’s most unique shopping precinct offerings of the year has sold for $4.645 million, achieving a tight sub-3.5% yield.
The striking four-level Prahran building of 704sqm at 173-175 High Street comprising seven separate titles with retail, office and residential components sold to a local private investor.
On a site area of 270sqm, the property comprises a ground floor café, four office suites and two penthouse apartments with balconies, and is leased to seven tenants.
Fitzroys agents Chris Kombi, James Lockwood and David Bourke sold the property on behalf of a private investor that oversaw the development of the building.
The sale price reflected a land rate of $17,300 per sqm.
Zoned Activity Centre 1, the property is located in the popular Prahran retail precinct, positioned just 40 metres from iconic Chapel Street, which is undergoing a revitalisation throughout the Prahran and Windsor end, spilling over throughout High Street.
Kombi said the purchaser was attracted to the rare commercial offering of a diversified income stream from three different sectors, each with rental growth potential.
He said the property’s seven titles gives the purchaser the future flexibility to sell-down each individually as they see fit.
“We received strong interest from multiple parties attracted to the uniqueness of the offering, as well as the future upside in this precinct,” he said.
“The local residential population continues to boom, driven by the nearby Forrest Hill precinct and developments such as 50-storey Capitol Grand to the north, and numerous high-density residential developments throughout the area recently completed or in various stages of planning and construction.
“The property is also surrounded by celebrated eateries including Hanoi Hannah, Huxtaburger and The Smith, and the continued revitalisation of the Windsor end of Chapel Street immediately to the south has spurred a bustling nightlife and hospitality precinct.
“This has been further bolstered by Newmark Capital’s plans for its $450 million mixed-use redevelopment of the Jam Factory nearby.”