The home of Burke Road, Camberwell’s longest-running business, menswear retailer Cavalier - which famously dressed TV star Bert Newton - has sold at an online auction in the latest remarkable retail property sale along the shopping strip this year.
A local investor living in Boroondara bought the asset after years of looking for a Camberwell property to invest in.
Established in 1955, Cavalier is the longest-running and most established business on the famous shopping strip. The retailer made a presence in living rooms across Australia through Bert’s outfits in the halcyon days of the silver screen, namely The Graham Kennedy Show, The Don Lane Show, New Faces and Celebrity Squares.
Cavalier isn’t going anywhere anytime soon. Burke Road, Camberwell has performed strongly throughout the challenges of COVID, according to Fitzroys’ latest Walk the Strip report, and the retailer has thrown its confidence behind the shopping strip in signing a new 5+5-year lease.
The two-level, 234sqm building is on a 253sqm site in the absolute prime of the famous shopping strip, next door to Mecca Cosmetica and surrounded by leading retailers including Sheridan, Telstra, Decjuba, Laurent, and Smiggle.
“There is huge pent-up demand that has built over the past 18 months, due to a lack of high-quality commercial property investment opportunities coming to the market,” Bourke said.
“The large volume of capital in the market simply isn’t being deterred by COVID interruptions. We’re consistently seeing results push new benchmarks.”
Initially the property was set for an on-site auction early in the month, but this was pushed back due to Melbourne’s sixth lockdown. Among the 30 registered bidders were investors from Melbourne, interstate, Singapore and Hong Kong.
“The commercial property market has been remarkably adaptable during COVID. Technological and logistical advances mean we are able to deliver a transparent and strong result that all parties are satisfied with.”
This is the fourth prime Burke Road asset put to the market this year through Fitzroys, marking the changeover of a combined 180 years of ownership across the offerings. Fitzroys has now sold $24.73 million at an average yield of 3.8%.
“It is especially noteworthy that all of these assets have been leased to discretionary retailers, further demonstrating the premium investors place on well-located shopping strip assets with leases to quality tenants,” Bourke said.
“The results reflect the confidence in retail property and the resilience of Melbourne’s shopping strips. Well-located bricks and mortar assets with quality lease covenants offer secure income-producing investments, which have become more highly sought-after in the COVID period and ultra-low interest rate environment.”
Fitzroys recently sold the 634 Burke Road building next door, home to Mecca Cosmetica, for $6 million at another virtual auction, fetching $1.4 million above the reserve. That followed Fitzroys’ $6.788 million auction sale of the Witchery store at 580 Burke Road, at $1 million above the reserve, and of 751-753 Burke Road, home to national retailer Mountfords Shoes on a long-term lease, for $7.55 million .
James said local neighbourhood strips have been the place for Melburnians to reconnect with their local communities.
“Burke Road, Camberwell has been ideally placed to weather the COVID period. A quality tenancy mix of local and national traders, cafés and restaurants attracts visitors from an affluent and established catchment looking to have a coffee, catch-up with friends, or to break up the day and go shopping, as flexible working arrangements become more widely practiced.”
He added that the catchment had been further enhanced by new medium and high-density residential and commercial developments such as Camberwell Village, Hawthorn Park, Aerial, The Well Residences, Elmington, Solstice and Ebony.