Rare Lygon Street freehold Opportunity Sells For $4.075m

Posted on 08th August 2022

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 two-storey building comprises open-plan ground floor accommodation with rear staircase providing access to a first 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; 83-85Doncaster Road in Balwyn North; and 318 Ascot Vale Road in Moonee Ponds, to a local medical practitioner.