119-121 Hawthorn Road, Caulfield North
An investor bought the 380sqm building for $3.52 million, on a 3.3% yield. Baker Bleu has a 5+5+5-year lease returning $123,735pa. The 420sqm site is zoned Commercial 1 and has a 10.13m frontage.
79-81 & 81a Evans Street, Sunbury
An investor paid $10.8 million at a 5.11% yield for the 1,028sqm building leased to Chemist Warehouse, Dorevitch Pathology and Evans Street Medical Clinic. Each of the tenants has a 10-year lease plus options for a combined return of $554,512pa plus GST. It is on a triple-fronted 1,036sqm site zoned Commercial 1.
255-263 Glenferrie Road, Malvern
The 5 adjoining shops known as Dixons Buildings sold for $7.75 million. They are occupied by restaurants Men-Tei and Ding Cantonese, a cake shop and Thai massage, with 1 shop vacant, and are on a 624sqm site.
178 Whitehorse Road, Blackburn
The 3-level 1,105sqm showroom building plus basement car park on an 821sqm corner site sold for $5.065 million at a 4% yield. Tenants include fitness centre Stan the Man and Sienna Tile Gallery, with the leases plus options running until 2027.
18 Goulburn Valley Highway, Seymour
An investor bought the KFC-tenanted property for $4.25 million at a 3.79% yield. The 245sqm building is on a 630sqm site and has a 10-year lease until 2025 with 3 further 10-year options, and returns $160,893pa plus GST.
128 & 128A Union Road, Ascot Vale
The 120sqm strata property sold for $896,000 at a 4.8% yield. It comprises a ground floor shop leased to a beauty salon on a 4-year term, and a 1-bedroom residence above.
10/220 Epping Road, Wollert
An investor paid $805,000 at a 5.2% yield for the 93sqm property, which has 7-year lease plus options to 2043 to Wellbeing Chiropractic that returns $41,850pa plus GST.
11/220 Epping Road, Wollert
Next door, another 93sqm space sold for $715,000, on a 5.85% yield. It has a 5+5-year lease until 2031 to Asian grocer Ceylon Hub and also returns $41,850pa plus GST.
381 Flinders Street, Melbourne
Brendan Keown has opened a 25-seater bar in the 84sqm space within Tavistock House, after signing a 5-year lease at $88,000pa.
3/435 Williamstown Road, Port Melbourne
An owner-occupier bought the 2-level 1,534sqm building for $7.15 million. It comprises 1,149sqm of fully-fitted offices and a 385sqm high-clearance warehouse, with on-site parking spaces.
Suite G06, 12-14 Cato Street, Hawthorn East
A local investor bought the 153sqm ground floor suite for $1.06 million, on a 5% yield. It includes 5 parking spaces and has a new 3-year lease returning $53,000 plus outgoings and GST.
190 Queen Street, Melbourne
Melbourne College of Business and Technology leased the 190sqm space on level 9 at $600/sqm.
15-17 Easey Street, Collingwood
The vacant 1,150sqm office and warehouse sold to a local buyer for $6.5 million. It is on a 623sqm site zoned Commercial 2.
48 Rae Street, Colac
An investor paid $970,000 at a 3.82% yield for the 546sqm building, which is on a 1,292sqm Commercial 1-zoned site. ASX-listed Reece has a 5-year lease to 2026 plus options returning $37,084pa plus GST.
Unit 17, 87-91 Heatherdale Road. Ringwood
The 264sqm storage and office unit was leased for 3 years at $34,000pa.
10-18 Brougham Street, Geelong
A Melbourne-based developer bought the 1,821 sqm site near Geelong train station for around $9 million, with plans for an apartment project. The site is next to the proposed $300 million hotel, retail and apartment development on the Dennys Lascelles wool store site.
1108 Geelong Road, Mount Clear
The 2,110sqm site occupied by Goodstart Early Learning sold for $4.06 million at a 4.91% yield. It has a renewed 10+10+10-year lease returning $199,500.
Melbourne’s Prime Shopping Strip Market Passes 1st Auction Test for 2022
Melbourne’s prime shopping strip market has passed its first auction test for 2022, with a unique offering in the absolute prime of Burke Road, Camberwell selling under the hammer for $6.66 million.
Fitzroys’ Chris James and David Bourke sold 566 Burke Road on behalf of private long-term owners. The commanding 646sqm 2-level building is set to be vacated by NAB at the end of June and will be repositioned by the purchaser, a local investor.
“This was a really pleasing result to start the year for Melbourne’s prime shopping strip market,” Bourke said.
“The market responded accordingly to one of the most versatile opportunities offered in the prime of Burke Road, Camberwell in years. We had interest from investors, value-add players and owner-occupiers, from across the country and offshore.”
The campaign generated around 100 enquiries and multiple bidders competed for the asset on auction day in front of a large crowd.
“Investors were keen to secure a freehold in one of Melbourne’s best-performing strips throughout the COVID period, while owner-occupiers saw an incredible opportunity to secure an ultra-prime flagship Melbourne shopping strip premises,” Bourke said.
“Prime Melbourne shopping strips assets continue to be regarded as compelling opportunities. There’s clearly pent-up demand and large volumes of capital waiting to be deployed in the market after low levels of quality stock came to the market over the past 2 years.”
The building comprises a 474sqm ground floor showroom with high atrium ceiling, and a first-floor mezzanine area with partitioned and open-plan offices and amenities. It provides walk-through accommodation to Market Place, offering further activation to the major car park and Camberwell Central, Woolworths, Kmart, Officeworks, and Aldi.
It is on a large 560sqm landholding zoned Commercial 1, with a commanding frontage of nearly 13m to the prime of Burke Road and Camberwell Junction precinct, just metres from the Junction itself and with huge exposure to passing traffic. It also has a 14.2m frontage to Market Place.
According to Fitzroys’ latest Walk the Strip report, Burke Road demonstrated its resilience with vacancies coming down from 11.3% to 7.3% last year marking the biggest reduction in vacancies across Melbourne’s iconic shopping strips.
“Burke Road has proven its credentials throughout the past 2 years, maintaining its quality tenancy mix of local and national traders, supermarkets, cafés and restaurants attracting large volumes of visitors and custom from its large, established residential and commercial catchment,” James said.
Fitzroys has now sold $31.4 million worth of prime Burke Road, Camberwell properties in just over 12 months, at an average investment yield of 3.8%, and with the sales combined marking the changeover of more than 200 years of ownership.
Landmark Pubs Change Hands
The freehold of the 168-year-old Brunswick pub the Sarah Sands Hotel has sold for $8.75 million, on a yield of 4.19%.
Previously operating as Irish pub Bridie O’Reilly’s, the pub at 29 Sydney Road, on the corner of Brunswick Road, is leased to Australian Venue Co. on a 10-year lease with multiple 10-year options until 2051. The tenant has undertaken $2.7 million worth of renovations.
The pub was initially a tollgate when Sydney Road became the prime route for travellers leaving from Melbourne to Sydney.
Australian Venue Co. is also taking over the leasehold of the Apollo Bay Hotel. The freehold going concern has just sold to a Melbourne-based publican for around $11.5 million.
The pub, on 2,368 sqm corner beachfront site at 95 Great Ocean Road, had been owned and operated by the vendors for 30 years.
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.