Weekly Wrap

Fitzroys Weekly Wrap - 17th March 2023

Posted on 17th March 2023

898 Nepean Highway, Hampton East
Marriott Support Services leased the 300sqm showroom and office for 5 years at $80,000pa net.

212 Swan Street, Richmond

A local investor bought the 2-level, 273sqm building on a 139sqm corner site for $2.225 million. It returns $74,378pa from a fitness centre on the ground floor and office tenant above.

206 Camberwell Road, Hawthorn East

The dual-tenanted 2-level 190sqm building sold for $1.3 million, on a yield of 4.9%. Leases to Roxbury Hair Salon and Academy Hair & Makeup return a total of $63,715pa plus most outgoings and GST.

167 Grattan Street, Carlton

A first-time investor bought the 150sqm double-storey building for $1,688,888.

1A Madden Street, Horsham

The 159sqm building, leased to Priceline on a 10-year deal to 2029 plus options, sold for $1.006 million on a 5.69% yield. Rent is $57,198pa plus GST.

3/5 Torca Terrace, Mornington

The 278 sqm shop sold for $937,500, with a 5+5-year lease in place returning around $39,000pa.

157 Auburn Road, Hawthorn
An owner-occupier bought the 1,183sqm 2-storey building for $5.11 million from Marco Fabrics, which has been operating from the premises for 30 years. The property comprises 668sqm of Commercial 1-zoned land and 369sqm zoned General Residential Zone 3.

Level 1, Suite 1, 526 Whitehorse Road, Mitcham

A local art teaching business leased the 86sqm office at just under $280/sqm net.

14 St Clair Court, Sale
The 633sqm office and warehouse on a 2,557sqm landholding with surplus land for future development sold for $1.02 million, on a 5.88% yield. Global subsea engineering company Oceaneering has a new 3-year lease with options that brings $60,000pa net plus GST.

Unit 3, 9 Viewtech Place, Rowville

The 340sqm warehouse unit sold for $875,000. Dana Precision has a three-year lease plus option returning $31,725pa.

109 Palmer Street, Richmond
Michael Spektor of National Retail Group acquired the 916sqm site for $5.9 million.

176 Station Road, New Gisborne
South Australian operator Warrina Aged Care sold the freehold and the business of the 79-bed facility, on a 7,000sqm site, for $25 million. The buyer is Victorian company Maiestas Care.

A Standout Freehold Investment With Future Upside
A rare opportunity to invest or landbank in Melbourne’s prestigious inner-east has come to market.

Fitzroys’ Chris Kombi, Chris James and Ben Liu are offering for sale the commanding hospitality building at 26-28 Cotham Road, Kew for sale by Expressions of Interest closing 30 March at 3pm.

Expectations are of $4.6 million-plus for the property, which was formerly home to Hellenic Republic, operated by high-profile chef George Calombaris and his hospitality group Made Establishment.

The immaculately refurbished 635sqm 2-storey building is being offered with a 6+6+6- year lease to chefs Ayhan Erkoc and Federico Perez Lopez for their popular Cotham Dining restaurant and Nazar Wine Bar, both operating under the 1 lease, returning $196,266 per annum plus GST (as at 15 November 2023).

Cotham Dining brings together the former Panama Dining Room and Feast of Merit chefs with a seasonal menu heavy on charcoals and woodfires, drawing on the large family meals of their respective Turkish and Colombian heritages. The distinctive thatched ceilings have been maintained, and the dining room has been refurbished with rustic elements and features exposed brick and greenery.

The venue seats 150 on the ground floor and holds 100 on the second floor.

The building is on a large 515sqm triple-fronted site with on-site parking and rear access, located within the Kew Junction Activity Centre with an allowable height of up to 18m (STCA).

“This presents as one of the best freehold investments with future upside opportunities in Melbourne’s inner east for 2023,” Kombi said.

“It’s an incredibly rare opportunity to invest or landbank in a prestigious inner-east location.

“Investors can acquire a well-presented, well-proportioned hospitality building in a central Kew Junction with a secure lease generating a strong rent return that will look all the more favourable as inflation begins to ease and interest rates normalise.

“Land bankers can acquire a central Kew Junction property with excellent upside, located among leading local and national tenants with public transport at its doorstep and some of Melbourne’s most renowned schools, and assess their plans for the site while enjoying a strong income stream.”

The site is surrounded by Toscano’s, Leo’s Fine Food & Wine, Woolworths, Woodfrog Bakery, Commonwealth Bank and The Skinny Dog, while Xavier College, Methodist Ladies College, Trinity Grammar and others are nearby.

There is also excellent public transport at the doorstep, including the 109 tram and the 624 bus.

“Melbourne’s inner-east is seeing a number of medium and high-density developments being delivered, in response to ongoing demand from Melburnians to find a home in what is already one of the city’s most established and affluent areas, with excellent hospitality and lifestyle amenity, quality local and national traders and some of its best schools,” James said.

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 2023 Fitzroys.