Weekly Wrap

Fitzroys Weekly Wrap - 14th April 2023

Posted on 14th April 2023

404 Glen Huntly Road, Elsternwick
Offered for the first time in over 50 years, the 195sqm 2-level building sold for $1.805 million on a 3.1% yield. Japanese restaurant Taku has a new 5+5+5-year lease. The building is on a 240sqm site zoned Commercial 1.

254 Chapel Street, Prahran

The 203sqm property home to Namak Indian Restaurant sold for $2.1 million on a yield of 5.38%. It has a 5-year lease to July and options to 2041 returning $113,000pa plus GST.

1/136 Frankston-Flinders Road, Frankston South

An investor paid $1.265 million, on a 5.83% yield, for the 280sqm showroom building. It returns $73,740pa plus GST from a 5+5-year lease from 2021 to Totally Workwear, as well as a Telstra mobile tower on a 5-year lease plus options.

194 Somerville Road, Kingsville

The vacant 167sqm building on a 117sqm Mixed Use-zoned corner site sold for $1.07 million.

11/1 Hunt Way, Pakenham

The 89sqm shop occupied by Thira’s Thai Massage sold for $780,000, on a 5.17% yield. The 5-year lease returns $40,324pa.

90 Nepean Highway, Mentone

The 90sqm shop, with a brand new 10-year lease plus options to a massage therapist, sold for $558,000, on a 4.84% yield.

55 Puckle Street, Moonee Ponds

National women’s fashion retailer Taking Shape leased the 235sqm building for 7 years with an option at $120,000pa.

Level 18, 41 Exhibition Street, Melbourne
An owner-occupier bought the 280 sqm whole floor for $4.15 million, or around $14,821/sqm.

29 Tarnard Drive, Braeside
The vacant 550sqm warehouse with 9 car spaces sold for $2.13 million.

Unit 8, 636 Whitehorse Road, Mitcham

The 173sqm warehouse and showroom with 5 car parks has been leased for 4 years, at just over $200/sqm plus GST.

197 Hutton Road, Keysborough
The 5,414sqm Commercial 1-zoned site adjoining the Keysborough South Shopping Centre sold for $4.125 million.

1 Niki Place, Officer

Development Victoria sold the 3,424sqm Urban Growth zoned-site site for $2.825 million to a childcare developer.

8-18 Edwards Street, Burwood
The vacant 45-bed former aged care centre site sold for $12.58 million, to an international investor with plans to run it as a new supported residential care unit for NDIS participants. The 5,614sqm site has approval for a new 110-bed home.

The Puckle Street Collection Hits the Market

Investors and landbankers have a generational opportunity to buy into one of Melbourne’s best-performing shopping strips.

Fitzroys Ervin Niyaz and Chris Kombi are marketing the 3 side-by-side freeholds at 42, 44 and 46 Puckle Street individually or in one line, on behalf of 2 private owners.

The Expressions of Interest campaign closes Thursday, 4 May at 3pm.

The 3 shops are all leased to experienced operators:
42 Puckle Street - 5-year lease to Smile Thai from 18th October 2019, returning $73,116pa
44 Puckle Street - 4+3+3-year lease to State of Grace Collective from 5th May 2021, $74,163pa
46 Puckle Street - 3+5-year lease to Body Catalyst from 1st May 2021, $53,045pa

The properties are on a substantial combined land area of 547sqm with over 15m of frontage to Puckle Street, offering great development upside, with surrounding projects of 9-plus levels, including the landmark Penny Lane development across the road comprising apartments, Palace Cinemas, Guzman y Gomez and more.

“We’re expecting investors and landbankers to compete for this property,” Kombi said.

“Puckle Street, Moonee Ponds has become one of the best performers among Melbourne’s famous shopping strips. Investors will be attracted to the excellent trading prospects and future rental growth potential due to the ongoing completion of new projects in the surrounds.”

According to Fitzroys Walk the Strip report, vacancies on Puckle Street, Moonee Ponds came down from 4.6% to 3.2% in 2022, among the lowest of Melbourne’s iconic shopping strips. The precinct also includes Moonee Ponds Central shopping centre, a Woolworths supermarket, and several local and national eateries and service retailers.

“It’s also a chance to invest in what is quickly becoming the lifestyle hub of Melbourne’s north-west with a proven track record for capital growth,” Kombi said.

“To have 3 adjoining investment opportunities in this tightly held, high-performing strip is remarkably rare.”

Niyaz said landbankers would take note of the generational development boom that is taking place in Moonee Ponds, which has seen the delivery of the Mason Square precinct and will be further supported by ongoing developments such as Penny Lane, and the future $2 billion residential and lifestyle overhaul of the Moonee Valley Racecourse nearby that will introduce 2,000 new dwellings as well as commercial space to the area.

“A huge number of Melburnians are looking to live in well-connected inner-suburban locations with high-quality and varied lifestyle and hospitality amenity, particularly at a time of flexible working arrangements. Moonee Ponds ticks all the boxes, with a high-performing shopping, hospitality and lifestyle precinct anchored by Puckle Street, and excellent public transport linkages by train, tram and bus,” Niyaz said.

“Landbankers can acquire a chunk of a high-performing Melbourne shopping strip and assess their options for the property while receiving a reliable cash flow.”

Secondary-Grade CBD Office Building Sells for $30m
An investor based on the Chinese mainland making their first entry into the Melbourne CBD commercial property market has bought a secondary-grade office building for around $30 million.

The 12-storey, 4,682sqm building is on a 509sqm site at 99 Queen Street and includes ground floor and basement retail space, and is currently leased to 12 tenants.

It was held by a private family for 17 years.

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.