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.