Weekly Wrap

Fitzroys Weekly Wrap - 14th February 2020

Posted on 14th February 2020

000 Retail 05

Cnr Warrigal and Cochranes Roads, Moorabbin
An active purchaser in the service station sector bought the ex-United fuel station site for $2.3 million, with plans to upgrade and rebrand the building.

831-833 Glen Huntly Road, Caulfield
The 411sqm 3-level shop and dwelling sold to a private investor for $1.863 million at a 4.9% yield. It is on a 316sqm Commercial 1-zoned site and has 3 leases returning $91,700pa combined.

80 Johnston Street, Fitzroy
The 2-level property sold for $980,000. It has a shop on the ground floor and three offices/bedrooms on the first floor.

862 Nepean Highway, Hampton East
Dance Dynamics Australia has leased the light-filled first-floor space of 278sqm for 5+5 years at $56,000pa net.

775 Burke Road, Camberwell
Shoe supplier Step Ahead leased the 100sqm shop at $80,000pa net.

780-782 Burke Road, Camberwell
Primal Physiotherapy leased the 372sqm 2-level showroom for 5+5-years at $96,000 net.

520 Victoria Street, Richmond
An experienced local operator will open a new café within the 86.5sqm space after signing a 3-year lease at $40,000pa.

158 Clarendon Street, East Melbourne
New Italian restaurant group, Est Italia leased the 600sqm ground-floor space for its first venue, Roccella.

256 Settlement Road, Thomastown
St Vincent de Paul leased the 1,000sqm showroom for 5 years.

000 Offices 05

9 Queen Street, Melbourne
Solicitor Paul Webster has leased an 86sqm space within the Chicagoesque Bennelong House at 9 Queen Street on a 1 year lease, with 4 further 1-year terms, at $35,000pa.

425 Docklands Drive, Docklands
BSM Global leased 166sqm in Suite 5 for 4 years at $500/sqm gross, taking the building to full occupancy. Centennial Property Group owns the property.

000Industrial 05

74-86 Garden Road, Claytonhttps://www.google.com/maps/pl...
The Wilson family, owners of Reece Plumbing, sold the 34,790sqm site with a 12,261sqm warehouse to developers Virtus Property Group for $17.925 million. Reece Plumbing is moving its warehouse to a new Bayswater facility.

42-44 Jessica Way, Fawkner
An expanding stonemason business paid $5.6 million for the vacant facility. Current tenant Adaptalift Group is moving to a larger premises.

1259 Sydney Road, Fawkner
A Queensland-based investor bought the Fawner Body Repairs workshop for $3.05 million. Zoned Commercial 2, the 1,995sqm site has a 1,655sqm building and is leased for 5 years plus options to 2042, returning $195,877pa plus GST.

1 & 2 Steele Court, Mentone
The 9,804sqm industrial site sold for the first time in 34 years, for $5.05 million. It has a 1,097sqm office and factory and is leased short-term to Keller.

3-5 Craine Street, South Melbourne
The 332sqm warehouse on a dual-fronted Commercial 2-zoned site sold with a short-term lease for $3.405 million.

5 Poa Court, Craigieburn
A local investor bought the 785sqm office building on a 1,125sqm site for $1.2 million, at a 6.25% yield after recently being leased for 2 years.

8 Archer Road, Truganina
CEVA Logistics has leased a 37,307sqm bespoke facility for 6 years, completing Frasers Property Industrial’s 310ha West Park Industrial Estate. The facility will have 1,800sqm of offices and 105 parking spaces.

11-13 Quality Drive, Dandenong South
Columbia Australia signed a 5+5-year lease over the 5,285sqm building at $450,000 plus outgoings and GST.

000 Development 05

88 Warringa Crescent, Hoppers Crossing
A 1,055sqm site with a fully-leased block of 4 2-bedroom units sold for $1,256,800 at a 4.7% yield.

000 Talking Points 05

Port Melbourne Landmark Going To Auction
A prominent piece of Port Melbourne’s history will be up for grabs when the circa-1887 former home of the Port Melbourne Building Society, on an invaluable corner site within the prime of the Bay Street retail and lifestyle strip, goes to auction in March.

James Lockwood and David Bourke of Fitzroys are marketing 226 Bay Street on behalf of a long-term private owner.

Constructed in the Victorian Free Classical style, the vacant 508sqm two-level building is on a rare triple-fronted site of 254sqm, with a wide 10-metre frontage to busy Bay Street.

“This marks a generational opportunity for an owner occupier, investor or developer to acquire one of Port Melbourne’s landmark freeholds,” Lockwood said.

Interest is expected in the early to mid-$3 million range. The auction will be held on 4 March at 1pm on-site.

Lockwood said a majority of the early enquiry is coming from owner occupiers and builders/developers who would look to refurbish the property or value-add, as there is scope to add a level above and take advantage of the prime city views Port Melbourne has to offer.

He said the property’s prime position within Bay Street, and close proximity to the Melbourne CBD and Port Melbourne Beach, as well as multiple public transport routes and major arterials offers attractive hospitality, lifestyle and accessibility attributes.

“These have become key drivers for owner occupiers and businesses looking for new locations, particularly as the inner-city office market becomes increasingly popular.

“Investors have also taken note of the heightened demand for well-located office properties across Melbourne’s

city fringe, and are seeking opportunities that will present solid future growth prospects.”

Located on the corner of Liardet Street, the property has exposure to high volumes of foot traffic and is adjacent to the busy Coles Supermarket and carpark.

Of Melbourne’s iconic retail and lifestyle strips, Bay Street has been one of the biggest beneficiaries of medium and high-density development in recent times, revitalising the precinct and bringing crowds throughout all hours to the popular cafés, eateries and historic pubs.

According to Fitzroys’ Walk the Strip report, Bay Street, Port Melbourne retail vacancies tightened 3.0% over 2018/19, one of the lowest across Melbourne.

Bourke said Bay Street has retained much of the Victorian-era shopfront architecture throughout its recent development-intensive period.

“Local 19th century icons dotting the famous precinct include the Town Hall, police station and post office buildings, as well as 226 Bay Street, while the influence of the port and its dockers is evident in prominent corner hotels that were also built through the 19th century,” he said.

Mazda Zooms Into Epping Estate
Frasers Property secured Mazda Australia as anchor tenant for its new 4Ten Epping estate. The car manufacturer signed a 10-year lease beginning from 2021 for the 37,235sqm national parts and distribution facility.

4Ten Epping is on a 63.4ha site next to the Melbourne Wholesale Fruit and Vegetable market, and will have an end value of $306.5 million on completion in 2027.

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 2020 Fitzroys.