Weekly Wrap

Fitzroys Weekly Wrap - 8th July 2022

Posted on 08th July 2022

000 Retail 05

57 Hawthorn Road, Caulfield North
An investor paid $2.41 million for the vacant 185sqm building, which is on a Commercial 1-zoned 209sqm site with a 9.04m frontage.

49 Koornang Road, Carnegie

An investor bought the 170sqm building on a 234sqm site for $1.4 million, on a 3% net yield. It has a 5+5-year lease to Lu’s BBQ returning $44,045pa plus outgoings and GST.

47 Koornang Road, Carnegie

The vacant 160sqm building on a 217sqm site zoned Commercial 1 with a large rear yard sold for $1.15 million.

175-185 Marong Road, Bendigo

An investor bought the 4,004sqm United Petroleum-leased fuel station property for $6.35 million, on a 5.47% yield. It has a brand-new 12-year lease with options to 2064.

3/31 Keilor Park Drive, Keilor Park

Former AMX boss Rod Hunter sold the 812sqm showroom, leased to AMX, for $3.13 million and on a 3.6% yield. AMX pays $117,000pa net on a 6-year term that began in 2020.

708 & 710 High Street, Armadale

The neighbouring shops sold for $2.81 million. They have a combined 234sqm building area on a 379sqm site. Pizzeria La Dolce Vita has a 3-year lease over number 708, and there is a monthly tenancy at 710.

13 Trawool Street, Box Hill North

An owner-occupier leased the 130sqm space for $800,000 for their dog grooming business.

256 McKinnon Road, McKinnon

The 87sqm ground floor tenancy was leased Snow White Bakery for 3 years at $35,000pa plus GST.

351 Elizabeth Street, Melbourne

F45 Training leased the 270sqm basement space, part of the former ANZ Bank building, for 5 years at $560/sqm.

000 Offices 05

366 Albert Street, East Melbourne
A local owner-occupier electronics distributor paid $10.5 million for 3 suites totalling 742sqm on level 1 within Orchard Piper’s $120 million mixed-use project.

145 Russell Street, Melbourne

PMDL leased 275sqm on level 4 at $675/sqm, while on level 3, PJT Tailoring took 275sqm at $700/sqm.

535 Bourke Street, Melbourne

SBA Law leased the 1,114sqm level 3 office for 6 years at $500/sqm.

000Industrial 05

62-66 Ricketts Road, Mount Waverley
The owners of Jardan Furniture have sold a 4,039sqm office, showroom and warehouse building on a 7,060sqm site with 54 parking spaces for $11.6 million. Jardan has moved to a 16,000 sqm purpose-built factory in Scoresby.

53 & 57 Paulson Road, Campbellfield

Zoned Industrial 1, the 2,787sqm site over 2 allotments sold for $2.15 million.

20 Sixth Avenue, Burwood

The 185sqm mechanic’s workshop on a 697sqm site sold for $1.61 million.

165 Donald Street, Brunswick

No Body Denim signed a 4-year lease over the 1,892sqm office, showroom and warehouse at around $100/sqm.

8 Longford Court, Springvale

A local business leased the 1,094sqm warehouse for 4 years plus options at $115,000pa.

000 Development 05

Cnr Princes Highway and Newmarket Road, Werribee
Oreana Property Group bought the Riverwalk Town Centre shopping centre development site for $12.3 million from Development Victoria. The 3.01ha site is within Riverwalk Estate, in which the State Government’s development arm has been developing housing, infrastructure and open space since 2011.

28-32 Service Street, Hampton

Developer Noetic Places bought the 3,662sqm cleared site for $17.32 million.

000 Specialised 05

439 Riversdale Road, Hawthorn East
A psychologist signed a 2+5+5-year lease over the 100sqm period building, which has off-street parking spaces, at $35,000pa net.

000 Talking Points 05

Rare Lygon Street freehold opportunity sells for $4.075m
Lygon Street has seen a very rare freehold sale under the hammer as investors look towards the rejuvenation of Melbourne’s famous dining, lifestyle and retail strip.

Fitzroys’ Ervin Niyaz and David Bourke sold 310-314 Lygon Street for $4.075 million on behalf of private owners.

The 345sqm part-single level and 2-storey building comprises open-plan ground floor accommodation with rear staircase providing access to a 1st floor office. Zoned Commercial 1 and on a large 544sqm site, the property commands a central position within the prime of the iconic precinct.

Niyaz said the offering with vacant possession presented a rare opportunity to secure a Lygon Street property for investment, occupation and/or value-add potential.

“The purchaser is a local private buyer who bought the property as an investment, and in future may value-add to the site’s car park area,” he said.

“They can see that uni students are returning, and there’s a new wave of cafés, bars, restaurants and dessert bars coming into the strip. Lygon Street’s becoming more vibrant again.

“There’s already been a strong rebound in night-time and weekend hospitality visitation this year and that’s had a profound flow-on effect to daily trade.”

Niyaz said there were more than 60 enquiries from investors, owner-occupiers and value-add buyers, drawn to the inner-city location, developments in the area, and the nearby universities and hospitals precincts.

“Several prominent individuals who are very familiar with Lygon Street and own properties in the strip made enquiries. Lygon Street is very tightly held. The opportunity to acquire a freehold in the prime of Melbourne’s most celebrated dining and retail strip is incredibly rare, and the enquiry and result reflected that.”

The property is located between Grattan and Elgin Streets and is surrounded by a vibrant array of cafés, restaurants, bars, retailers and entertainment venues including DOC, Brunetti, Mecca, Seed, Grill’d, Vintage Cellars, Readings, Ti Amo, Heartattack and Vine, King and Godfrey, Woolworths, Sportsgirl, Country Road, and Cinema Nova, among many others.

“Longer-term, the rapid growth of Carlton to accommodate and encourage student and residential apartment developments for the influx of professionals and young families is set to underpin stronger trade throughout all hours,” Bourke said.

“The area has received a significant amount of investment from developers and the City of Melbourne, in an effort to keep up with the demand for amenities and accommodation from residents and businesses.”

He said the prime section of Lygon Street has endured the COVID period quite well.

Niyaz added that there has been a good appetite in the Melbourne commercial property market for large vacant buildings with value-add potential from investors and owner-occupiers.

Fitzroys recently sold vacant buildings including the former Carlton Post Office building at 146-154 Elgin Street for $5.525 million; 74 Station Street, in an absolute prime position in the Fairfield Village retail precinct, for $500,000 above reserve; 83-85 Doncaster Road in Balwyn North; and 318 Ascot Vale Road in Moonee Ponds, to a local medical practitioner.

HThree City Confirms Melbourne CBD Purchase
Singaporean fund manager HThree City has again backed the future of the Melbourne CBD, buying the 330 Collins Street office tower for $236 million alongside co-investor City Developments Limited.

The 18,000sqm, 18-storey tower is located at the intersection of Collins and Elizabeth Streets, and is around 90% leased. It has ground floor retail and 43 basement car parks.

HThree City last year bought the partly-vacant 446 Collins Street office building for nearly $73 million, on a fully leased 4.3% yield.

Its latest acquisition is yet another Melbourne CBD office asset purchase by a Singaporean investor. CapitaLand Investment recently bought the 22-storey office tower at 120 Spencer Street, opposite Southern Cross Station, for $321.25 million with 97.5% occupancy, and SLB Development picked up the vacant former Victoria University campus building at 225 King Street for $40 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 2021 Fitzroys.