Weekly Wrap

Fitzroys Weekly Wrap - 15th April 2022

Posted on 15th April 2022

134 Lygon Street, Brunswick East
The 2-level 152sqm building home to popular bar The Alderman sold to a local investor for $1.55 million, on a 3.9% yield. It is on a 154sqm site and has a 5+5+5-year lease returning $61,200pa.

314-322 South Gippsland Highway, Dandenong South

The 4,399sqm fuel station site sold for $4.09 million at a 4.47% yield. United Petroleum has a new 12-year lease plus options to 2064 returning $182,625pa.

T5/55-63 Nicholson Street, Brunswick East

An investor paid $940,000sqm on a 4.86% yield for the 119sqm ground floor property within the Nightingale development. It has a 7-year lease to café Mary Miller until 2028 with options to 2043, returning $45,675pa plus GST.

23-25 Tattersalls Lane, Melbourne

Chinese restaurant Shanghai Village is opening a 2nd venue after it leased the 400sqm 2-level building at 190,000pa.

15 Collins Street, Melbourne
An owner-occupier paid $1.69 million for the 140sqm office, occupying half of level 14.

176 Hall Street, Spotswood
The 4,792sqm site directly opposite Spotswood train station sold for $6.4 million, at a 1.99% yield. Melbright Coaches’ current lease term runs to the end of 2023 with a further 5-year option subject to a 12-month early termination clause. Zoned Industrial 3, the site has a 1,256sqm office and warehouse.

64-66 Albert Street, Preston

2 showrooms and warehouses of a combined 1,395sqm on 1 title sold for $4.1 million, after selling for around $3 million just over a year ago. Both buildings have short-term leases and are on a 2,044sqm site.

60/7 Dalton Road, Thomastown

The 353sqm office and warehouse sold for $1.685 million, on a 5.17% yield, with a 3+3+3-year lease from December 2019.

Melbourne’s Prime Shopping Strip Market Passes Another Early Test
Melbourne’s prime shopping strip market has passed yet another early test in 2022, with a multi-tenanted property in the heart of Glenferrie Road, Malvern selling for $7.15 million at a tight blended yield (retail and office) of 4.1% yield.

Fitzroys’ Chris Kombi and Mark Talbot, in conjunction with Aston Commercial’s Rodney King, sold 193-195 Glenferrie Road & 86-92 Union Street on behalf of a private investor who had owned the property for 30 years.

A local buyer purchased the property.

The sale price reflected a high land rate of $21,280/sqm and building rate of $14,896/sqm.

The property comprises a two-storey 460sqm building with 5 ground-floor retail spaces and a 1st-level whole-floor office, on a 336sqm site zoned Commercial 1. Fully leased, it returns $310,000pa plus outgoings and GST from tenants Cannings Butchers, Urban Man, Peter Cat Café, Melanie K Hair, C-Free Day Spa and S&K Group on a range of lease terms.

It is on a dominant corner position with combined frontage of 55m directly opposite Glenferrie Road’s anchor tenant and major drawcard, Coles supermarket, in a high foot traffic location and surrounded by national retailers, all major banks and a host of popular eateries.

“This was a generational opportunity to secure a significant freehold within the prime trading section of one of Melbourne’s strongest-performing retail strips,” Kombi said.

“We had huge interest and received multiple offers from investors and land bankers from Melbourne and across Australia.”

“Buyers noted that Glenferrie Road is one of Melbourne’s most consistent shopping strips, with a quality mix of national and established local traders servicing a prized affluent and broad catchment, and has benefited from continued high spending on retail, food and beverage and services over the past 2 years.”

“Land bankers could acquire a dominant corner site opposite the strip’s anchor tenant - a high-performing Coles supermarket - and enjoy a strong diversified income stream while assessing their options for the property.”

According to Fitzroys’ Walk the Strip series, Glenferrie Road, Malvern is “arguably the best example of strip centres providing an environment that people want to shop and find community in”.

Talbot said, “Shopping strips have proven their resilience throughout COVID, and assets in prime locations remain compelling opportunities.

“We’ve seen yet again that there’s pent-up demand and large volumes of capital waiting to be deployed in the market after an extended period of low levels of quality stock being presented.”

In the prime Melbourne shopping strip market’s 1st auction test for 2022, Fitzroys sold a unique offering in the absolute prime of Burke Road, Camberwell under the hammer for $6.66 million, to an investor with tenant NAB set to vacate in June.

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.