Weekly Wrap

Fitzroys Weekly Wrap - 27th September 2019

Posted on 27th September 2019

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180 Brunswick Street, Fitzroy
The 136sqm 2-level building is leased to Newtown Specialty Coffee on a 3+3-year lease and sold for $1.03 million at a 4.3% yield, and a land rate of more than $15,000/sqm.

59A & 61 Armadale Street & 12 Fetherston Street, Armadale
Comprising 3 titles, the 310sqm corner site sold for $3.376 million, with a lease to Coin Laundry Café in the retail space that returns $124,518pa plus outgoings and GST. It also has a vacant office of 80sqm.

533 High Street, Prahran
An antiques dealer and furniture restorer bought the 2-level, 168sqm building for $1.76 million, with a short-term lease to Jean Pierre Heurteau Design.

112-114 Fordham Avenue, Camberwell
The 289sqm site has a 216sqm building with two shops and a residence, which sold for $1.15 million with a permit for two townhouses at the rear.

572 North Road, Ormond
The vacant 2-level shop and dwelling of 196sqm, on a 241sqm site, sold for $777,0000.

174 Chapel Street, Windsor
Middle Eastern sweets shop Kaneffi signed a 5-year lease for the 71sqm shop at $62,000pa.

715 Burwood Road, Hawthorn
Regan Motors Peugeot Citroen leased the 635sqm showroom and warehouse at $160,000pa in a 3-year deal.

20 Victoria Road, Hawthorn East
The 217sqm showroom has been leased for 5 years at $65,000pa plus GST.

233 Union Road, Ascot Vale
A hairdressing salon leased the 200sqm building for 3 years at $45,000pa net.

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Building 5, 658 Church Street, Richmond
Sydney-based fitness app Sweat leased the 312sqm office at $610/sqm gross.

25 Howard Street, Richmond
PR and events agency Two Birds Talking leased the 222sqm suite at $600/sqm.

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94 West Park Drive, Derrimit
La-Z-Boy Australia sold the the 6,780sqm facility for $7.8 million to automotive spare parts company Sterling Parts, which will use the site as a distribution centre.

67 Gipps Street, Collingwood
Enshine Group bought the office and warehouse for $3.04 million. The 395sqm corner site is zoned Commercial 2 and is leased to Label Levverage.

1/1876-1878 Sydney Road, Campbellfield
Fix & Fasten leased the 1,926sqm showroom and warehouse for 5 years at $85/sqm net.

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275 Hawthorn Road and 277-279 Hawthorn Road, Caulfield
Offered separately, the adjoining General Residential 2-zoned sites sold respectively for $1.951 million and $5.3 million. Number 275 is on the corner of Glen Eira Road and covers 606sqm, and the apartment block site next door covers 1,834sqm for a combined 2,440sqm.

447 Bay Street, Brighton
A private developer bought the 1,040sqm corner site, with a short-term lease to the Brighton Swim School, for $6 million. It has approval for a mixed-use development with 17 apartments and ground-floor shops.

680-682 Highbury Road, Glen Waverley
A local childcare centre developer paid $2.35 million for the 1,130sqm site, which has approval for a 113-place centre.

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493 Ballarat Road, Sunshine
Gastroenterologist Ian Fok sold the Sunshine day hospital for $8.6 million to a medical syndicate at a 6% yield. It has a building of 1,000sqm leased to Dr Gastroenterology and hepatology practice Dr Scope on a 10+5+5 year-deal, returning around $520,000pa.

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Inner-East Remains A Premier Destination
Assets across Kew have been picked up in quick succession, as Melbourne’s inner-east proves its widespread reputation as a blue-chip retail and commercial property location.

In the latest deal, a Vietnam-based investor purchased the shop and dwelling at 103 Cotham Road, within Cotham Village, for $1.225 million in a deal negotiated by Chris James and Jordan Ceppi of Fitzroys.

Zoned Commercial 1, the property is on a generous 260sqm site and has a prominent double-storey freehold of 200sqm, with a fully self-contained ground floor retail and a separately accessible three-bedroom residence, and two on-site parking spaces.

The property sold at a tight 4.3% yield, and has a new lease to Hair by Chesika on the ground for and a monthly lease over the residence.

James said investors continue to look for well-located, securely-leased Melbourne shopping strip properties, which present solid income-producing opportunities in a low interest rate environment.

Ceppi said the asset was offered with a new lease and is positioned within the popular Cotham Village which services the blue-ribbon suburb of Kew and the affluent wider catchments of Hawthorn and Balwyn in the inner-east.

“Kew is also a well-regarded commercial office location, helped by the increasing popularity of medium-density living throughout Boroondara. This will continue to enhance the local catchment of residents and workers, increasing pedestrian traffic and demand for retail shops, services, and food and beverage offerings.”

In other deals, the 400sqm shop home to Kew Friendly Supermarket at 81A Willsmere Road sold for $1.641 million. It is on a 440sqm double-fronted site and has a 5-year lease returning $42,841pa net.

At 1159 and 1161-1163 Burke Road, a private company bought the adjoining vacant 2-level retail and office buildings for $3.35 million. They sit on a combine land area of 723sqm that is zoned Commercial 1.

Not-For-Profit Takes Ground Floor of Historic CBD Building
The Buddhist Heruka Kadampa Meditation Centre has bought the vacant 373sqm ground floor of 79-81 Franklin Street for $4.09 million for its new city location.

The three-level Currie and Richards Building was constructed in 1875 as a workshop and warehouse for tinware manufacturer Alfred Shaw and Co.

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.