Weekly Wrap

Fitzroys Weekly Wrap - 13th September 2019

Posted on 13th September 2019

000 Retail 05

169 Middleborough Road, Box Hill
The 160sqm shop sold for $995,000 at a 3.2% yield, with a 5+5-year lease to Box Hill Paint Specialists.

6-8 Floriston Road, Boronia
The 2,500sqm site, with three fully leased buildings of a combined 987sqm and 30 parking spaces, sold for $4.86 million. Current income is $156,052 plus outgoings and GST.

30 Guildford Lane, Melbourne
A local private investor bought the 256sqm dual-storey building home to Cat Cafe for $4.4 million at a 2.45% yield.

703 Glenferrie Road, Hawthorn
The Laurent Bakery-occupied building of 200sqm sold for $3.91 million, and returns $145,232pa plus GST.

22 Russell Place, Melbourne
The 53sqm strata shop sold for $1.7 million.

Lower Ground, 333 Flinders Lane, Melbourne
An interstate investor bought the 120sqm vacant basement office for $1.12 million.

115 Koornang Road, Carnegie
An investor bought the shop and dwelling for $1.785 million. Three tenants return $67,860pa net.

110 & 110A Gardenvale Road, Gardenvale
The 575sqm site sold for $1.585 million and has one vacant shop, one space leased to Gardenvale Physiotherapy & Pilates, and a vacant one-bedroom dwelling.

233 Beach Street, Frankston
The 67sqm bottle shop, on a 236sqm site, sold for $730,000 at a 3% yield.

819 Glenferrie Road, Hawthorn
A workwear retailer leased the 40sqm space for 2 years at $21,500pa.

823 Glenferrie Road, Hawthorn
Tattooist Kristian Kimonidies inked a 3-year lease over the 140sqm basement at $38,000pa.

825 Glenferrie Road, Hawthorn
Melbourne Pilates Method Studio signed a 3-year lease at $38,000pa.

Building 10, 658 Church Street, Richmond
STA Travel leased the 700sqm space for 5 years at around $650/sqm gross.

000 Offices 05

420 St Kilda Road, Melbourne
My Integra signed a 3-year lease over the 500sqm space at around $650/sqm gross.

Level 4, 68 Clarke Street, South Melbourne
Global travel company Luxury Escapes signed a 5-year lease for the whole floor within the under-construction building at around $700/sqm gross.

000Industrial 05

7-29 Gladstone Road, Dandenong South
An offshore investor bought the 11,500sqm building, home to the head offices of Victoria Carpets, from developer and investor Up Property for $14.75 million. The property includes a warehouse and has a site area of 20,500sqm.

865 Mountain Highway, Bayswater
The new office, showroom and warehouse sold for $4.5 million at a 5.68% yield, with a 5+5-year lease.

57-59 Stephenson Street, Cremorne
Zoned Commercial 2, the vacant 351sqm warehouse site with three street frontages sold for $3.95 million.

19 & 21 Efficient Drive, Truganina
A Sydney investor bought the neighbouring warehouses of 1,214sqm and 1,382sqm for $3.5 million.

38 Shafton Street, Huntingdale
Cynosure Six will move from their current home in Rowville after buying the 305sqm office and warehouse building with 11 on-site parking spaces for $1.1 million.

3G Marine Parade, Abbotsford
Tekt Industries signed a 10-year lease at $192,500pa plus GST for the 1,000sqm office and warehouse building, which has 16 basement parking spaces.

13-15 Wangara Road, Cheltenham
Portavin leased the distribution facility, on a 5,767sqm site, at $90/sqm.

7 Howard Street, Richmond
US-based design firm Populous signed a short-term lease at $40,000pa net plus GST.

000 Development 05

350 Malvern Road, Prahran
Zoned Mixed Use, the 400sqm site sold for $2.52 million with short-term income from two apartments.

121 Toorak Road, South Yarra
Angela Jewellery leased the 70sqm space at $50,000pa.

000 Specialised 05

368 Tooronga Road, Hawthorn East
The 147sqm dental clinic building, on a 520sqm site, sold for $1.91 million with a 10-year lease plus options to Smile Designs Dental.

265 Clarendon Street, South Melbourne
CityMed Medical Centre, a new centre started by a doctor and practice manager also with existing operations in St Kilda, leased G19 with a state-of-the-art fit-out for 8 years at $150,000pa.

000 Talking Points 05

Smith Street Growth Prospects Wow Investors In $4.575 Million Sale
Surging commercial and residential development centred around Smith Street has attracted huge interest from developers, investors, and land bankers in a versatile freehold in the prime section of the renowned inner-north lifestyle strip.

Fitzroys agents Mark Talbot and Lewis Waddell sold 95-97 Smith Street, Fitzroy on behalf of the Zelwer family for $4.575 million at a sharp 3.4% yield.

More than 100 enquiries were received during the campaign, leading to fierce competition between four bidders at auction.

Located within the prime section of Smith Street, and near the corner of busy Gertrude Street, the 434sqm site has a wide frontage of 10.95m and a double-storey building of 697sqm.

Waddell said the offering was a quintessential inner-north Melbourne freehold, home to video game-themed nightspot Pixel Alley at street level and popular bar Mr Wow’s Emporium on the first floor. Australian Education Academy also occupies a space on the ground floor of the building. The property returns $184,000 per annum net plus GST with a lease profile expiring in April 2023.

Waddell said the purchaser is a private investor who has acquired the property as an investment and future value-add play.

“The property is in an unrivalled position, surrounded by Melbourne’s best food and hospitality venues, and supported by a rapidly developing apartment and commercial office market.

“A range of buyers were attracted to the property’s attractive Commercial 1 zoning in a high-growth area, with a large number of office and residential developments taking place nearby that will further underpin the strong trading throughout Smith Street and sustain rental growth.”

According to Fitzroys’ latest Walk the Strip report, Smith Street has among the lowest vacancy rates of Melbourne’s iconic shopping and lifestyle strips at just 2.7%, underpinned by its world-class trendy nightlife and hospitality offering. Smith Street is located just one kilometre from the CBD, and is easily accessible via the exceptional transport amenities, including the Route 86 tram.

Fitzroy Retail Corner To Make Way For Mixed-use Project
Pace Development Group has bought a 2,434sqm retail corner site for $20 million with early plans for a mixed-use residential project.

Zoned Commercial 1, the property is on the corner of Johnston, Gore and Argyle Streets and has buildings leased to My Pet Warehouse and furniture store Mark Tuckey until 2024 that bring a combined $533,000pa.

Pace also has projects in Collingwood and Abbotsford and plans for residential towers in Coburg and Macaulay.

Also in the inner-north, development consortium Tope Lane bought the former Thrifty Link hardware store site of 1,540sqm in Clifton Hill, at 15-33 Queens Parade, for $6.5 million.

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 2019 Fitzroys.