Weekly Wrap

Fitzroys Weekly Wrap - 6th May 2022

Posted on 06th May 2022

517 & 517a Chapel Street, South Yarra
A local investor paid $3 million for the 2-storey, 311sqm building at a 3.9% blended yield. Eternal Bridal occupies the ground floor on a new 3+3+3-year lease and Katuk Bar has a 10-year lease over the 1st floor.

Shop 2, 118-128 Bromfield Street, Colac

The 804sqm strata property leased to ASX-listed Best & Less sold for $2.41 million at a 3.75% yield. Best & Less’s lease returns $90,500pa plus GST.

74 Nyah Road, Swan Hill

A Melbourne investor bought the 6,666sqm Bunnings store property at a 3.99% net yield. The warehouse is on a 1.66ha site and has a 14-year lease with 6 5-year options running to 2059, returning $721,789pa net.

177 Brunswick Street, Fitzroy

The double-storey 256sqm building home to bar Bonny sold for $2.225 million at a 3.7% yield. Bonny has a 5-year lease from 2021 returning $82,500pa.

356 Whitehorse Road, Nunawading

The 225sqm building sold for $1.92 million at a 2.92% yield. It is leased to John Stonemart Memorials on a 3+3-year term retuning $60,205pa.

143 Marshalltown Road, Grovedale

An investor bought the 400sqm showroom on a 792sqm site occupied by Burson Auto Parts for $1.48 million, at a 2.64% yield. It has a 3+3+3-year lease from the beginning of 2020 that returns $39,196pa net.

459 Collins Street, Melbourne
Fineos Australia leased the 267sqm office on level 22 for 5 years at $560/sqm.

Units 1-6, 38-40 Little Boundary Road, Laverton North
The portfolio of 6 industrial units sold for $8,715,000. It currently returns $244,707pa and up to $400,000pa net when fully leased. The units total 4,162sqm and are on a 7,568sqm site zoned Industrial 2.

53 Cochranes Road, Moorabbin

An investor paid $2.701 million for the 640sqm showroom and warehouse on a 1,003sqm site, on a 3.45% yield. It has a new lease until December 2024 to a long-term tenant returning $93,258 plus outgoings and GST.

7-11 Third Avenue, Sunshine

An owner-occupier paid $2.65 million for the 1,350sqm office and warehouse on a 3,050sqm site zoned Industrial 1.

14 Industrial Drive, Sunshine West

The 1,338sqm building with a 5-tonne gantry crane on a 2,000sqm site was leased at $120,000pa.

25 Lincoln Street, Richmond

Electric scooter hire operator Neuron Mobility leased the 834sqm office and warehouse for 1 year with options at around $180/sqm.

16 Fink Street, Preston

Burson Auto Parts leased the 2-level 1,063sqm office, showroom and warehouse building at $145,000pa net.

135-137 Market Street, South Melbourne
A developer bought the 351sqm site for around $4 million, at a rate of $11,500/sqm. It has a permit for a 7-level building.

Carlton Post Office Sells for 2nd Time in Nearly 140 Years
Carlton’s landmark Post Office has changed hands for just the 2nd time in nearly 140 years.

Fitzroys’ Chris Kombi and Ervin Niyaz negotiated the $5.525 million sale of the vacant 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.

The sale price reflected a high building rate of $14,540/sqm.

Constructed in 1883 in a classical style between conservative and boom classicism, the 2-level building is listed on the Heritage Register of the National Trust and 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.

The purchaser plans to initially lease out the premises to retail and office tenants and then potentially occupy the premises in the future.

“This was 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 had owner-occupiers, investors and value-add players all pursuing the rare chance to be a part of this celebrated suburb’s rich history,” he said. More than 120 enquiries were generated during the Expressions of Interest campaign.

“Owner-occupiers were looking to take the opportunity to acquire their own landmark premises on the fringe of Melbourne’s CBD, while investors and value-add players noted the popularity of inner-city offices with flexible working arrangements in vogue.

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

The building is also just a short walk to the famous Lygon Street precinct and the suburb’s multitude of popular eateries and wine bars. The location is well serviced by multiple tram routes along Swanston, Lygon and Nicholson Streets, and multiple bus routes, and is a short distance from Melbourne’s universities precinct that includes the University of Melbourne and RMIT.

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

He noted that self-contained buildings have been identified by tenants in the COVID period as allowing for greater control over health security and logistical issues.

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 ìa 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 freestanding quality of the building is also notable.

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.