Food and beverage-tenanted properties throughout Melbourne’s inner-north continue to attract investor interest, and increasingly represent an iconic real estate holding.
The sale price reflected a remarkably high land rate of more than $15,000 per sqm.
Niyaz, Yeh and Lionetti acted on behalf of Wai Man Tse and Selina Pun Fun Tse. The property had been held within the family for 32 years.
Zoned Commercial 1, the property has a two-storey building of 136sqm leased to high quality café Newtown Specialty Coffee on a 3+3-year term.
Ungar Investments Pty Ltd is the new owner and will hold the property as an investment.
“We received strong interest due to the nature of the offering being a rare freehold in Fitzroy at a price point under $1.1 million,” Niyaz said.
“More than 80 enquiries were generated throughout a very competitive campaign. As a result, a huge land rate for a narrow shop was achieved.”
Niyaz said there currently appears to be heightened interest in food and beverage-tenanted offerings and shop and dwellings in strip locations across Melbourne’s inner-north.
“Melbourne’s inner-north is renowned for its vibrant and edgy food and beverage and lifestyle offering, and this has become synonymous with Melbourne’s broader reputation. Retail assets occupied by hospitality operators across the inner-north are increasingly coming to represent an iconic Melbourne real estate holding.”
He added that the section of Brunswick Street between King William Street and Johnston Street is currently more tightly held than between Johnston Street and Alexandra Parade, nearer to the growing amount of residential and commercial development in the precinct.
Yeh said the offering’s investment credentials were underpinned by its lease to a quality café operator on famous Brunswick Street, Fitzroy, and located in the heart of a booming inner-city area that bodes well for rental growth.
“Melburnians continue to move into, work and go out across the inner-city in growing numbers, attracted to the highly regarded and popular lifestyle offerings of Brunswick Street, Gertrude Street and Smith Street.”
“A large number of office and residential developments are taking place nearby, which will continue to drive strong trading and boost the immediate catchment of an area that already attracts high pedestrian traffic from the breakfast and brunch crowds in the morning through to the live music, cocktail bar and club revellers late at night.”
Fitzroys has just sold the substantial double-storey retail freehold at 95-97 Smith Street, Fitzroy, for $4.575 million at a sharp 3.4% yield, also leased to hospitality and lifestyle tenants.
More than 100 enquiries were received for the property, comprising a double-storey building of 697sqm in the prime of the retail strip that is home to video game-themed nightspot Pixel Alley at street level, and popular bar Mr Wow’s Emporium on the first floor.