Weekly Wrap

Fitzroys Weekly Wrap - 16th September 2022

Posted on 16th September 2022

84 Cumberland Road, Pascoe Vale
The vacant 202sqm building on a 405sqm site sold for $1.66 million to a value-add buyer who will refurbish and lease out the property.

28 Newquay Promenade, Docklands

A local investor paid $1.63 million for the 310sqm waterfront property, which has a new 6+6-year lease to restaurant Solidaire returning $97,332pa plus outgoings and GST.

Rear 202 Carlisle Street, Balaclava

An investor bought the 55sqm strata-titled property for $900,000, on a building rate of $16,634/sqm. Café Monk Bodhi Dharma has a new 7+7+7-year lease returning $55,509pa plus outgoings and GST.

125 Charman Road, Beaumaris

The corner property with residential zoning and leased to child education group Kids Like Us sold for $1.9 million. It has a 5-year lease returning $70,344pa.

7/335 Harvest Home Road, Epping

The 78sqm shop leased to educational network Kumon sold for $965,000 on a 4.93% yield. Kumon has a brand-new 5-year lease plus options to 2037.

5&6/335 Harvest Home Road, Epping

Opposite Coles and Aldi supermarkets, the 161sqm shop leased to Indian grocer Desi Point on a new 10-year lease with options sold for $1.896 million on a 5.09% yield.

56 Garnsworthy Street, Springvale

Yoga studio Downward Duck & Co leased the 112sqm space for 3 years at $116/sqm.

10 Beach Street, Port Melbourne
The Australian Property Institute sold its 426sqm former headquarters building for $4.76 million. it is on a 385sqm beachfront site with a 17m frontage and zoned Mixed Use. The API has moved to the CBD.

Unit 3, 11-12 Phillip Court, Port Melbourne

A local private investor bought the vacant 630sqm office and warehouse with 10 parking space for $2.7 million.

273 Dundas Street, Preston

The 455sqm office and warehouse on a 629sqm Industrial 3-zoned site sold for $1.801 million. It was offered with short-term income of $50,750pa.

113 Dryburgh Street, North Melbourne

Expanding family business Rosso Coffee leased the 582sqm warehouse at $74,000pa plus outgoings.

138 White Street, 141 & 143 McDonald Street, Mordialloc
Three adjoining properties on a combined 1,780sqm site sold for $5.25 million with potential for a townhouse development, with 5 levels above ground and a basement level below. Currently, the sites are occupied by automotive repair shops and a food and beverage business and have 1,031sqm of buildings.

530 Melton Highway, Sydenham
The medical clinic building on a 1,011sqm site sold for $2.345 million on a circa 5% yield. Capital Radiology has a new 5-year lease to December 2026 returning $132,000pa plus outgoings.

39 Bay Street, Port Melbourne

The 611sqm building on a 385sqm corner site home to The Exchange Hotel sold for $8.92 million, on a 4.63% yield. The Exchange Hotel was established in 1916 and is currently run by Australian Venue Co on a renewed 10-year lease with options to 2051.

Ripe Land-Rich Inner-North Site
A land-rich, ripe landholding of 669sqm in Fitzroy North has come to the market, offering a rare opportunity to occupy or redevelop in Melbourne’s highly sought-after inner-north.

Fitzroys’ Chris Kombi, Ervin Niyaz and Shawn Luo are marketing 726-732 Nicholson Street via Expressions of Interest closing Wednesday, 21 September at 3pm.

Price expectations are around $5 million.

The site currently comprises 4 shops on 3 titles of a combined 463sqm with 8 rear onsite car parks accessible via Scotchmer Street, and has an expansive frontage to Nicholson Street of 21.95m.

It is being offered with short-term holding income.

Zoned Commercial 1, it offers higher-density development potential with multi-level towers nearby ranging from 4 to 6 levels.

Kombi said interest had already been received from developers, value-add players, land bankers and owner-occupiers.

“It’s incredibly rare to find a ripe development opportunity of this size on a main road position in Melbourne’s inner-north,” he said.

“So many of these sites have been sold and built out by prudent developers, and the consistent theme is there has been ongoing, overwhelming demand in the immediate area across multiple projects.”

Niyaz said accessibility and quality lifestyle amenity are all-important, and inner-city locations are particularly popular with Melburnians as flexible working arrangements become commonplace. He added that the site is surrounded by multiple cafés and eateries, and is just one kilometre from the Lygon Street hospitality precinct and 450m to Edinburgh Garden, while the Route 96 tram stop is at its door step with bus services along nearby Scotchmer and Pigdon Streets.

Luo said owner-occupiers had the chance to occupy part or all of the existing building, and bring a new offering to a vibrant, fast-growing inner-city location.

“The area surrounding Nicholson Street has seen a surge in the development of residential apartments in recent years along Nicholson Street, St Georges Road and Queens Parade, and the significant population boom will benefit all businesses along Nicholson Street,” Luo said.

Former ABC Site Set for Woolworths Development
Woolworths has won a bid to build a supermarket and dual-tower apartment complex on a former ABC studios site in Elsternwick.

Woolworths’ development company, Fabcot Pty Ltd, had initially sought to build a podium with 2 towers – one rising 14 storeys – on the 6,155sqm Selwyn Street site before submitting revised plans. The tallest of the towers is now at 9 storeys. The plans include a full-line supermarket, bottle shop, two retail spaces, offices, a library/museum, café and function area, as well as the apartments above. The heritage-listed former Elsternwick Fire Station will be retained.

Woolworths bought the site from the national broadcaster 5 years ago for about $45 million.

Last year, the ABC also sold the 8 Gordon Street studio site in the same suburb for nearly $30 million. The 11,740sqm block was acquired by a local developer.

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.