A private local buyer was the purchaser, one of three bidders at the auction following strong enquiry during the campaign that included local and interstate investors.

The high-profile two-level 180sqm building is positioned on a 160sqm site in the core of Puckle Street. It comprises a ground level Japanese restaurant with dining area, commercial kitchen and storage leading to an expansive four-bedroom dwelling with bathroom on level one. Popular eatery Mizu Sushi has a renewed 5+5-year lease.

“Investors were looking to get into what is a traditionally strong retail strip with excellent trading prospects due to the ongoing completion of a number of new buildings surrounding Puckle Street,” Niyaz said.

According to Fitzroys’ new Walk the Strip report, Puckle Street vacancies came down from 4.6% to 3.2% in 2022, among the lowest of Melbourne’s iconic shopping strips. It will be further supported by ongoing developments such as Penny Lane that will bring apartments, retail, hospitality and a Palace Cinema to the strip, and the future $2 billion commercial and residential overhaul of the Moonee Valley Racecourse nearby.

“This was also a rare chance to invest in what is fast-becoming the lifestyle hub of Melbourne’s north-west with a proven track record for capital growth,” Niyaz said.

Puckle Street anchors the Moonee Ponds retail and lifestyle precinct that includes a Woolworths supermarket, Moonee Ponds Central, and a number of local and national eateries and service retailers.

Kombi said, “Despite the rising interest rates, we’re continuing to see a good depth of enquiry, strong results and tight yields in this part of the market,” Kombi said.

“Investors are keen to secure a steady cash flow from retail and commercial properties with quality tenants on long leases.”