Weekly Wrap

Fitzroys Weekly Wrap - 22nd November 2019

Posted on 22nd November 2019

000 Retail 05

Shops 19-20, 190 Jells Road, Wheelers Hill
A local investor bought the 210sqm strata titled property within the Wheelers Hill Shopping Centre for $2.4 million, at a 5.2% yield. Renowned hair salon Rokk Ebony has a 10+5+5-year lease over the premises, which incorporates two tenancies trading as Fratelle Hair and Buzzy Barber.

779-785 Heidelberg Road, Alphington
The 1,140sqm 7-Eleven corner site sold for nearly $6.2 million. Zoned Commercial 1, it has a planning permit for an 8-level mixed-use project of 3,662sqm.

15-17 Hamilton Place, Mount Waverley
Adjoining retail shops of a combined 358sqm on a 484sqm site sold for $4.25 million, with a return from 2 tenants totalling $119,130pa plus outgoings and GST.

5 & 6 Shakespeare Grove, St Kilda
The 89sqm ground floor space on 2 titles sold for $1.45 million at a 5.68% yield, with a 5+5-year lease to restaurant Gyoza King.

732-734 Mount Alexander Road, Moonee Ponds
A local investor paid $910,000 for the partially-tenanted 215sqm shop.

75 Station Street, Burwood
The 85sqm shop sold for $800,000 at a 2.7% yield, and is occupied by Chinese restaurant Chef Tan.

Shops 3 & 4, 948-960 High Street, Armadale
Absolute Health Performance leased the new 330sqm space, on the ground floor of Bensons’ The Chronicle apartment development, for 10 years at $540/sqm.

439 Bay Street, Brighton
Yoga group CorePlus leased the 240sqm ground floor space at $85,000pa plus outgoings.

516 Hampton Street, Hampton
Cycle Closet leased the 132sqm shop for 5 years with an option at $60,000pa plus outgoings and GST.

000 Offices 05

Levels 7 & 8, 474 Flinders Street, Melbourne
The vacant strata-titled office property of 1,676sqm over 2 levels sold for $9.6 million, with a 9b education certificate in place.

102 & 108, 486 Whitehorse Road, Surrey Hills
The office suites of a combined 189sqm sold for $750,000, and includes 7 parking spaces.

38 Ellingworth Parade, Box Hill
Eighth Quarter Real Estate Group signed a 5 year lease for the 625sqm office, with 24 parking spaces, at $173,000pa.

100 Langridge Street, Collingwood
Moss Enterprises leased the 1st floor space at $35,000pa plus GST and outgoings, at a floor rate of $100/sqm.

000Industrial 05

46-62 Fowler Road, Dandenong South
Logistics firm Ladher Express bought the 2,190sqm facility on a 26,080sqm site for $5.7 million.

29 Stephen Road, Dandenong South
The 582sqm factory sold for $1.083 million with a lease to a long-standing tenant.

82 Lipton Drive, Thomastown
An owner occupier bought the vacant 568sqm warehouse for $820,000. The building is on an 863sqm site zoned Industrial 1.

5/220 Barry Road, Campbellfield
An automotive tenant leased the 2,102sqm clearspan warehouse at $125,000pa net.

000 Specialised 05

347-541 Springvale Road, Forest Hill
Inspire Early Learning leased the 1,048sqm childcare centre site, licensed for 157 places, for $486,700pa off-the-plan.

000 Development 05

293-295 Maroondah Highway, Ringwood
A local developer paid $5.6 million for the 1,360sqm corner site over 2 titles, which has approval for a 10-level mixed-use development of 8,066sqm.

11 Brunswick Street, Fitzroy
A developer bought the vacant 3-level 469sqm building for $5.1 million, at a unit rate of $728,571/unit. Zoned Commercial 1 and utilised as an art gallery and 4-bedroom residence, the property has a site area of 368sqm and permit approval for a 7-level development.

1/188 Plenty Road, Preston
The office and showroom site of 2,535sqm sold for $4.5 million to a local buyer that plans to lease the property before developing a residential project. The property is zoned Commercial 1 and has development potential of up to 8 levels.

22-28 Hawker Street, Airport West
A developer bought the 6,131sqm site, across 8 titles, for $4.322 million. Zoned Commercial 2, the property has a 2,717sqm building and is leased until October 2021 returning $215,000pa net.

000 Talking Points 05

Chapel Street Transformation Rings Out
Growing spending on food and beverage throughout Chapel Street has attracted the world’s largest Mexican restaurant chain, Taco Bell, to the famous lifestyle shopping strip.

Fitzroys agents James Lockwood and Lewis Waddell leased the 320sqm, fully-fitted space at 352 Chapel Street, South Yarra to the US-based food giant, on behalf of a private investor. The site is due to open by the end of the year and marks the launch of the chain in Melbourne.

Lockwood said the interest in the property generated throughout the global campaign and by Fitzroys’ international contacts demonstrated the high regard in which Chapel Street is still held by major operators across Australia, as well as abroad.

He said Taco Bell is looking to capitalise on the recent influx of spending within the area, and recognised the growth prospects that the growing residential and worker population offered Chapel Street.

“Residential and commercial development in the area has both increased and prompted a shift in the immediate catchment’s demographics, which has brought a higher spend on food and beverage.”

He said Melburnians continue to embrace inner-city living and are increasingly looking to live, work and go out in and around the city, reflected in the development of the high-density Forest Hill precinct nearby and a pipeline of projects that includes the $1.25 billion Jam Factory overhaul, the soon-to-be-completed Capitol Grand and W Hotel, and new office builds at 627 Chapel Street and Chapel Plaza at 402 Chapel Street.

“Taco Bell is well-placed to offer its world-famous Mexican-inspire cuisine throughout the day to the growing worker population, in the evening to local residents, and the nightlife crowd that descends on the length of Chapel Street.

“Chapel Street remains the busiest club, bar and dining precinct of any of Melbourne’s retail strips south of the Yarra, and draws visitors from across Melbourne.”

Taco Bell serves 2 billion customers each year at more than 7,000 restaurants across the world.

“Taco Bell wanted to secure an address in one of Melbourne’s - and Australia’s - most famous shopping and lifestyle precincts for its debut in the city,” Waddell said.

Waddell said hospitality groups made strong enquiry throughout the campaign, with the property offering a full hospitality fit-out and kitchen infrastructure. The enquiry demonstrated a clear appetite from food and beverage traders to secure a site on Chapel Street and the surrounding areas and tap into the growing local population and be a part of its transformation.

According to Fitzroys’ latest Walk the Strip, Chapel Street, South Yarra vacancies came down from 18.1% to 15.6% throughout 2018/19.

Taco Bell’s other Melbourne store will be at 650-652 Glenferrie Road, where it has leased a 148sqm space at $150,000pa net.

CBD Buildings Change Hands
Private owners have traded a 3-storey office building next to the Queen Victoria Market’s Munro site for around $17 million.

Fitzroys Director, Rob Harrington handled the off-market sale of 104 Franklin Street in conjunction with Colliers International.

The 1,666sqm building is leased to an education tenant, and is on a 677sqm site that will have direct access to the market via a new adjacent laneway on completion of the Munro site redevelopment.

Plans for the Munro site, which covers 6,500sqm, include two towers of 38 storeys and 10 storeys being developed by PDG, which will include 490 build-to-rent units to be ultimately owned by Mirvac, and a hotel.

On Bourke Street, the owners of adjoining older-style CBD buildings have sold the properties for the 1st time in 40 years for a combined $11.17 million.

The 417sqm, 4-storey building at 418-420 Bourke Street, home to menswear retailer Peter Jackson on the ground floor, sold for $5.57 million. Next door, the 2-storey 238sqm building at 422-424 Bourke Street changed hands for $5.6 million.

Richter Portfolio Nets More Than $25 Million
Apartment blocks across Melbourne and a Northcote warehouse owned by criminal lawyer Robert Richter, QC have sold for a combined $25.311 million.

The 7 properties included 8 James Street and 499 Station Street in Box Hill, which sold for $6.66 million and $1.701 million respectively, as well as sites in Ascot Vale, Essendon Glenroy, Fawkner and Chadstone.

Grandather’s Axe, a Danish secondhand furniture firm, occupies the Northcote property, 171 High Street which is zoned Industrial 3 and sold for $3.215 million at a 4% yield.

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.