Retail investments located in high-performing local villages and with quality lease covenants continue to attract high levels of enquiry and sell strongly.
Fitzroys’ Chris Kombi and Chris James sold 219 Upper Heidelberg Road for $1.63 million on a tight 4% yield, marking the first time the property had sold in over 35 years.
The property has a long lease with options to world-class operator and chef, Andrea Cozzolino, who has twice been voted World Pizza Champion, and his Little Naples Pizzeria.
The immaculately-presented freehold of 152sqm has a modern fit-out and improvements and has direct access to a large council car park at the rear.
The campaign generated over 80 enquiries, leading to fierce competition between four bidders on auction day.
“There’s clearly a strong appetite for well-located, well-leased investment opportunities despite the ongoing interest rate hikes. We’re still seeing a good depth of enquiry in campaigns, multiple bidders at auctions and strong results,” Kombi said.
“Investors continue to find safety in bricks-and-mortar assets.”
Kombi said the long lease to a world-class operator and world-champion operator was a huge drawcard to investors, who were keen on securing a reliable income stream.
“Astute investors understand that the strong rent return will look even more favourable as inflation begins to ease and interest rates normalise.”
Naples-born Cozzolino moved to Melbourne in 2012, when he was 22. In 2015 he opened Zero 95 Pizza bar in Doncaster, which was followed by Zero 95 Express in Templestowe, and in 2016 he won the World Pizza Championship in Naples, in the traditional Napoletana category, competing against more than 600 pizza chefs from around the world. He followed that up in 2017 by winning the Gluten-Free category at the World Pizza Championship in Las Vegas.
James said well-located properties across Melbourne are attracting strong enquiry levels.
“Melburnians have reacquainted themselves with their iconic local villages over the past few years. Upper Heidelberg Road is no exception, experiencing high levels of foot traffic and is supported by an affluent and established catchment.”
According to Fitzroys’ latest edition of Walk The Strip, vacancies in Upper Heidelberg Road improved to just 4.7% in 2022.
He added that the property is in an excellent position surrounded by national tenants plus popular lifestyle and entertainment businesses including Café Strada, Vino Central, Va Tutto, Crust Pizza, Westpac, Flight Centre and more.