Weekly Wrap

Fitzroys Weekly Wrap - 11th March 2022

Posted on 11th March 2022

000 Retail 05

1358-1360 North Road, Oakleigh South
An investor bought the 1,270sqm showroom and office building leased to Tasman Butcher, on a 2,934sqm site, for $5.7 million. It has a 10-year lease to 2028 plus options to 2043 that brings $212,627pa net plus GST.

Shop 3/1 Madden Boulevard, Tarneit

An investor paid $830,000 for the 87sqm shop at a 4.72% yield. It was constructed in 2021 and is leased to an Indian grocery for 10 years plus options to 2041 and returning $39,150pa plus GST.

Shop 4/1 Madden Boulevard, Tarneit

The 87sqm sqm property sold for $900,000, at a 5.32% yield. It has a 5-year lease plus options to 2031 to real estate agency Reddy G returning $47,850pa plus GST.

Shops 3 & 4, 10-14 Railway Avenue, Ringwood East

A local café operator associated with a neighbouring venue leased the 140sqm combined property at $285/sqm to use as a new café.

377 Little Bourke Street, Melbourne

South-East Asian fusion eatery Rice Paper Scissors will open at the 112sqm space after signing a 3+5-year lease at $80,000pa.

000 Offices 05

Level 3, 320 Queen Street, Melbourne
A local financial services firm paid $3.01 million for the 301sqm office, which comes with a 117sqm balcony. It is located within the former Celtic Club hotel, above which developer Beulah International has built a 48-level residential tower.

000Industrial 05

54, 56 and 58 Metrolink Circuit, Campbellfield
GLJS Investments sold the 11,931 sqm parcel comprising 3 Industrial 1-zoned blocks for $9 million to a private investor.

51-53 Jesica Road, Campbellfield

Repairhub Australia, a subsidiary of IAG Group, leased the 3,600sqm building for 5 years at $275,000pa.

65/266 Osborne Avenue, Clayton South

A local investor bought the 242sqm office and warehouse for $760,000, at a 3.53% yield. It has 4 on-title parking spaces and is leased on a monthly agreement.

000 Development 05

15 Illowa Street, Malvern East
A local developer paid more than $2.2 million for the 555sqm apartment block site, which is zoned Residential Growth and has 67m of street frontage.

000 Specialised 05

179 Chapel Street, Windsor
Colonial Leisure Group bought the freehold of the Windsor Hotel, where it has operated pizza and pub venue Lucky Coq for 15 years, for $7.3 million. The Caneva family had owned the freehold for more than 50 years and previously operated the property, when it was known as the Duke of Windsor, until Colonial Leisure took over in 2006.

55 Graham Street, Shepparton

An investor paid $1.465 million for the medical clinic building at a 3.17% yield. I-Med Radiology has a 5-year lease to December 2024 plus options to 2038 over the 707sqm dual-fronted site, returning $446,506pa net plus GST.

000 Talking Points 05

Circa-1883 Carlton Post Office Presents Historic Opportunity
Carlton’s landmark Post Office building is available for sale for just the second time in nearly 140 years, offering owner-occupiers, investors and value-add players an incredibly rare chance to be a part of the celebrated suburb’s rich history.

Fitzroys’ Chris Kombi and Ervin Niyaz are managing the Expressions of Interest campaign for 146-154 Elgin Street, Carlton, on behalf of a private local family that has owned the property for almost 30 years. It had previously been owned by Australia Post.

Expectations are of $5 million-plus.

Constructed in 1883 in a classical style between conservative and boom classicism, the two-level building is listed on the Heritage Register of the National Trust and is being offered with vacant possession, having been home to the post office for over 135 years on the ground floor, with offices above.

It is on a 645sqm site zoned Commercial 1.

“This is an incredibly rare chance to be a part of Carlton’s history,” Kombi said.

“Historic inner-Melbourne buildings such as the Carlton Post Office are very tightly held.

“We’re expecting interest from owner-occupiers looking to take the opportunity to acquire their own landmark premises on the fringe of Melbourne’s CBD, while investors and value-add players will note the popularity of inner-city offices while flexible working arrangements are in vogue.

“The property also presents the chance to create an iconic hospitality venue in one of Melbourne’s most celebrated dining and nightlife destinations,” he said. It is just a short walk to the famous Lygon Street precinct and the suburb’s multitude of popular eateries and wine bars. Flexible zoning allows for further development of the property sympathetic to its heritage.

“Character buildings provide a point of difference for owner-occupiers and businesses. They never go out of fashion,” Niyaz added.

“The Carlton Post Office provides the highly sought-after qualities of character elements, close proximity to hospitality amenity, and an easily accessible inner-city location.”

The location is well serviced by multiple tram routes along Swanston, Lygon and Nicholson Streets, and multiple bus routes. It is also a short distance from Melbourne’s universities precinct that includes the University of Melbourne and RMIT.

Completed in 1883, the Carlton Post Office building was designed by J. H. Marsden and erected by James Kennedy for the Public Works Department.

The Victorian Heritage Database Report describes the listing as “a fine example of the palazzo type post office”.

“It is a dominant and essential feature of the neighbouring area,” the Report says.

The brick building has rendered façades and a notable composition with arcades on both floors creating a solid and void effect. Unusually for this type of building, it features superimposed trabeated systems and two tier arcades. The original ground floor arcade has been enclosed to form part of the main postal chamber.

The Expressions of Interest campaign closes Wednesday, 30 March.

Dandenong Office Building Sells for $14m
A dual-level office building anchored by Macpherson Kelley Lawyers in Dandenong’s main activity centre has sold for $14 million to a private investor.

The 2,605sqm building at 40-42 Scott Street is on a 2,166sqm corner site and last sold in 2004 for $4 million. Macpherson Kelley has a new 9-year lease.

The property is located in the main Dandenong activity centre that is part of the Victorian government’s $290 million Revitalising Central Dandenong initiative, which is expected to attract more than $1 billion in private investment and create 5,000 jobs.

Melbourne’s suburban office market also recently saw the BFX family office buy the 16 Lakeside Drive building within Tally Ho Business Park in Burwood East for $13 million, from Hong Kong-based Glorious Sun.

The fully-leased 2,313sqm building is tenanted by the Country Fire Authority, Everkeen Group and Cora Group and sold on a 6.1% yield. It has a 2.3-year weighted average lease expiry.

Fitness First Site Set for Redevelopment
Boutique Melbourne developer Neometro has acquired a 5,008sqm St Kilda site for $21.8 million.

Directly opposite Alma Park, the 97 Alma Road property is leased to Fitness First until October 2024 with no further options. It comprises a gym, recreation, and leisure centre with work-out studios, 25-metre pool and two futsal courts and currently returns $841,399 per annum.

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.