Weekly Wrap

Fitzroys Weekly Wrap - 25th March 2022

Posted on 25th March 2022

125 Main Street, Mornington
An investor paid $2.62 million at a 3.3% yield for the 164sqm strata-titled property. Home in the Hamptons has a 5+5-year lease returning $87,550pa plus outgoings.

27-31 Hardware Lane, Melbourne

An investor making their first purchase in Melbourne paid $7.42 million for the 3-level retail and office building, known as Henry George House, at a 3.46% yield. Fully leased to 4 tenants, including Lulu’s Char Koay Teow, the property returns $257,112pa net. It sold on a building rate of $17,176/sqm and land rate of $41,685/sqm.

1163-1165 High Street, Armadale

Offered for the first time since 1985, the 391sqm shop sold for $5.56 million. It has a monthly lease to Sofas Direct and is approved for a retail and apartment project.

454 Neerim Road, Murrumbeena

The 130sqm single-level shop, long-term home to Taras Cafe & Indian Restaurant, sold for $860,000 on a 4.3% yield. It returns $38,115pa.

650 Glen Huntly Road, Caulfield South

Customised furniture business Zenn Design leased the new 110sqm corner tenancy on a 3+3-year term at $400/sqm.

90-94 Nicholson Street, Abbotsford
Mark LoGiudice’s Crawfords Group bought the 2-level office building for $5.66 million, at a 2.6% yield. The 1,425sqm building is on a 756sqm site and is leased to entertainment company Funlab on a 3+3-year term returning $147,000pa.

41 Hamilton Street, Gisborne

An owner-occupier bought the vacant 322sqm Queen Anne-style building on a 2,008sqm corner site for $2.14 million.

5 Pilgrim Court, Ringwood
The 1,224sqm office and warehouse sold for $3.86 million at a 3% yield. It has a short-term lease to gym Iron Kingdom, returning $116,543.

Unit 2, 1611-1615 Dandenong Road, Oakleigh

Garry & Warren Smith automotive group leased the 632sqm newly-completed showroom and warehouse for 4 years at $113,000pa net.

26 Bass Court, Keysborough

A national tenant leased the 873sqm office and warehouse facility early in the construction phase for 5 years at $110,000pa plus outgoings and GST. It is on a 1,153sqm Industrial 1 zoned site with 13 on-site parking spaces.

346-348 Whitehorse Road, Balwyn
A medical centre developer with plans to occupy and run a new centre bought the 1,505sqm site for $5.8 million.

25 Arabin Street, Keilor

An owner-occupier paid $1.375 million for the 1,020sqm development site, which has a 1960s split-level house and self-contained unit.

New Lease of Life for Melbourne CBD Laneway Icon
A Melbourne CBD laneway icon has a new lease of life.

The site of Degraves Espresso, which has welcomed countless Melburnians and tourists on its way to becoming a stalwart of Melbourne CBD’s world-famous laneway coffee culture, has been leased to the operator of neighbouring venue The Quarter.

It will continue operating under the famous Degraves Espresso name.

Fitzroys Associate Director - Agency, James Lockwood negotiated the off-market lease of 23-25 Degraves Street at $145,000 per annum plus outgoings and GST, on a long 5-year deal with 3 x 5-year options. The business name and all equipment were included in the terms.

The 60sqm café space is being fitted out and an opening is anticipated in the coming weeks.

“The Degraves Espresso name has a huge amount of goodwill associated with it,” Lockwood said.

“It’s the archetypal Melbourne laneway café. It holds a special place in the city’s celebrated laneway culture.”

Lockwood said the competitive campaign and the long-term lease conditions reflected the huge faith operators have in the location.

“The new operator has been in hospitality for more than 30 years and knows the area very well. They’re confident the CBD will return in a big way.

“Enquiries came from not just CBD operators, but other operators within Degraves Street and the immediate surrounds. It shows the enduring strength and appeal of Degraves Street as a hospitality destination.”

Degraves Espresso occupies 2 shopfronts in the iconic laneway that connects Flinders Street and Flinders Lane. It was originally opened in 1996 by Con Christopoulos, who now owns the European, City Wine Shop and Spring Street Grocer, among other venues.

The venue’s prime position in Degraves Street attracts countless Melburnians and tourists for coffee, lunch and people-watching, with the café perched close to the entrance of Flinders Street Station.

“People have been waiting to have those quintessential Melbourne experiences again and are voting with their feet. Busy weekends in the CBD have returned and weekday pedestrian traffic is rebounding as people get used to the ‘COVID-normal’ environment,” Lockwood said.

Amazon to Open First Australian Sorting Facility in Melbourne
Amazon is building a $65 million warehouse that will be its first dedicated sorting facility in Australia.

The 15,600sqm shed is being built within ASX-listed Goodman Group’s Amaroo Business Park, near the Hume Highway in Craigieburn. It will be used to sort picked and packed orders before they are transported to other last mile locations for delivery to customers.

The facility will have capacity to process up to 300,000 parcels each day.

Amazon aims to eventually deliver parcels within the hour in Australia’s major capital cities, as it does in London, New York, Los Angeles and Japan.

Amazon has opened 4 Victorian distribution centres – in Dandenong South, Mulgrave, Ravenall and Tullamarine – since it launched its Australian operations in 2017.

The company will be the first tenant in the 40ha business park.

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.