Weekly Wrap

Fitzroys Weekly Wrap - 10th December 2021

Posted on 10th December 2021

000 Retail 05

59 Patterson Road, Bentleigh
A local investor paid $1.205 million for the 140sqm shop and dwelling on a 204sqm site, which was offered with short-term holding income.

89-91 Franklin Street, Melbourne

The Europcar leased property sold for more than $8.25 million. The 201sqm retail space comes with 33 car parks and returns $478,551pa from a 15-year lease to 2026 with options to 2041.

81-83 Toorak Road, South Yarra

The corner shop leased to a pharmacy and 4 other tenants sold for $5.6 million after 60 years of family ownership. It returns $188,446pa.

5-11 Stock Street & 8 Roadknight Street, Lakes Entrance
Home to a hardware store for over 50 years, the 4,632sqm site sold for $3.98 million at a 7.61% yield. It has 2,250sqm of buildings used for the hardware store, which has a new 10-year lease plus options, and also has 2 3-bedroom holiday rental homes.

152 Hawthorn Road, Caulfield North

A local investor bought the 160sqm building on a 260sqm site for $1.52 million, at a 3.5% yield. It is leased to 2 tenants returning a combined $53,245pa.

88 High Street, Wodonga

The 327sqm site sold with a brand-new 7-year lease plus options to takeaway shop Rock’n’Roll Roasts sold for $1.004 million, at a 5.27% yield.

000 Offices 05

146-154 York Street, Sale
An investor bought the 1,991sqm building on a 4,404sqm site for $11.6 million, at a 5.4% yield. It has a 3.6-year weighted average lease expiry and is leased to state and federal government tenants, with current tenants including the department of Health and Human Services and Services Australia.

150 Cremorne Street, Cremorne

The 265sqm cold shell strata space sold for $2.815 million to a local accountant with ties to a German medical tech company. The vacant property underneath the Nylex clock will be occupied by Munich firm Brainlab.

000Industrial 05

8 Northpoint Drive, Epping
Amber Homes bought the 6,266sqm ready-to-develop site for $5,012,800. It is zoned Comprehensive Development has a 48m frontage.

140-142 Langridge Street, Collingwood

A textile business bought the 550sqm double-storey office and warehouse on a 275sqm site for $4.5 million.

6-8 Dream Haven Court, Epping

Specialised manufacturers of high-quality composites, Creative Composites, leased the 6,000sqm factory, office and warehouse facility.

000 Development 05

46-52 St Kilda Road, St Kilda
The 747sqm corner site sold for $5.75 million with approval for a mixed-use development with 23 apartments.

8 Alexandra Street, South Yarra

The 3-level block of 9 flats on a 500sqm site sold for $4.2 million.

000 Talking Points 05

Developer Buys Blue-Chip High Street, Armadale Site
A high-profile High Street, Armadale property has sold well above reserve in another demonstration of the strong demand for assets in blue-chip locations throughout Melbourne’s best shopping strips.

Fitzroys’ Chris Kombi and Chris James negotiated the sale of 1147-1151 High Street for $6.15 million, at a very sharp 2.7% yield and high land rate of $14,500 per sqm.

A developer acquired the commanding 425sqm site in the heart of the popular strip. Zoned Commercial 1, it offers an expansive retail frontage of almost 14m and is occupied by longstanding tenant Armadale Antique Centre.

“The property sold well above reserve after we received 14 registered Expressions of Interest within the selling range from local and interstate investors, land-bankers, developers and owner-occupiers,” Kombi said.

“Buyers across all profiles recognised the rare opportunity this site presented to buy in the heart of High Street, Armadale.”

He said highly accessible sites near quality retail, hospitality and lifestyle amenity continue to be heavily favoured by developers, particularly during a period of more flexible working arrangements.

“High-end boutiques, discretionary retailers and specialist food purveyors have been attracted to the High Street’s affluent and established catchment, and new developments are serving to further activate the strip, attracting commercial and retail tenants, as well as downsizers wanting to stay in the locale,” Kombi said.

The strip has seen famed Sydney butcher Victor Churchill make its long-awaited Melbourne debut within the Alara development in the circa-1910 State Savings Bank building, which will introduce 19 high-end apartments in the immediate vicinity.

Further developments such as Chronicle, The Carlile, and at 969-975 High Street will also be built on High Street itself.

According to Fitzroys’ Walk the Strip report, High Street, Armadale retained single-digit retail vacancies in 2021.

“High Street, Armadale is widely recognised as one of Melbourne’s most successful retail strips, boasting some of Melbourne’s best shopping boutiques, a growing specialist food offering and quality cafés, wine bars and restaurants, and located within one of the city’s most prized catchments,” James said.

“High Street’s quality mix of local and national traders, cafés and restaurants has throughout the COVID period attracted visitors looking to break up the working day and have a coffee or something to eat, catch-up with friends, or go shopping.”

“The area’s popularity with families, students and professionals has seen demand significantly increase for more commercial and retail space and high-density housing, prompting investment from local council and developers trying to keep up with the demand.”

The strip benefits further from its highly accessible location via public transport and major roads, and the site is directly in front of a tram stop and close to Armadale train station.

Another Major Fitzroy Street Sale
The former Bayside St Kilda Motel site has sold for more than $25 million as Fitzroy Street, St Kilda undergoes a transformative period.

The 40-studio apartment complex is on a 1,924sqm site with a car park at the rear and 8 shops fronting the street. Plans have been drawn up for a 5-storey development.

Also along Fitzroy Street, developer Tim Gurner bought the former Cushion Lounge site at number 99-105 last year for $2.25 million and has plans for a $35 million boutique hotel, while founder and CEO of data centre operator AirTrunk, Robin Khuda recently paid $21 million for 3-15 Fitzroy Street, which comprises 14 apartments and 5 shops on a 1,600sqm site.

Fitzroy Street recently saw the new Victorian Pride Centre open, while Erdi Group is planning to overhaul the 80-room Rydges Hotel at 35 Fitzroy Street to create a QT Hotel offering.

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 2021 Fitzroys.