Weekly Wrap

Fitzroys Weekly Wrap - 21st April 2023

Posted on 21st April 2023

126-130 James Street, Templestowe
The fully-leased 482sqm retail property anchored by Bendigo Bank sold for $6.13 million on a 4.96% yield. It is on a 641sqm triple-fronted, Commercial 1-zoned site.

720 Burke Road, Camberwell

A local investor purchased the 55sqm ground floor strata-titled shop for $688,000. It is leased to a bubble tea tenant trading as Teaser on a 4 2 2-year term.

482 Toorak Road, Toorak

The 124sqm 2-level Tudor-style shop on a 148sqm site sold for $2.53 million. It is occupied by a skincare clinic until the end of August, returning $56,243pa.

611 Balcombe Road, Black Rock

The 2-level 230sqm building on a 234sqm site sold for $1.75 million, on a 3.82% yield. Longstanding tenant Taco Bill has a 5 5-year lease from the beginning of 2022 that includes a 12-month demolition clause and returns $66,950pa.

121 Station Street, Malvern

The 110sqm strata space sold for $610,000, on a 5.9% yield. It has a 3-year lease to tattooists Maithai for 3 years, returning $36,000pa.

A/475 Toorak Road, Toorak

A café leased the 27sqm space at $1,070/sqm.

Shop 3, 1 Post Office Place, Glenroy
A private investor bought the 2-level renovated brick building for $827,500. It has a new 3 3-year lease to a financial advisor and mortgage brokers returning $40,000pa.

Level 9, 356 Collins Street, Melbourne

SNC-Lavalin leased the 231.9sqm office for 3 years at $137,000pa, or $575/sqm. The property is owned by 356 Collins St Pty Ltd.

2 Strezlecki Grove, Laverton
The vacant 570sqm office and warehouse with a 5-tonne crane, on a 1,120sqm Industrial 3-zoned site sold for $1.52 million.

32/42 McArthurs Road, Altona North

The vacant 275sqm office and warehouse within the McArthur Business Park sold for $868,000.

9/51 Centre Way, Croydon South

The 200sqm unit sold for $455,000, with a monthly lease in place returning $1,502pcm.

65 Wattlepark Avenue, Moolap

Zoned Industrial 1, the 629sqm warehouse site sold for $435,000. A monthly tenancy returns $600/month.

241-245 Brunswick Road, Brunswick
A local developer paid $6.8 million for the Commercial 1-zoned 1,179sqm property, currently occupied by Consolidated Metal Industries.

10-12 Riversdale Road, Newtown

A local developer bought the adjoining Industrial 1-zoned blocks of 604sqm and 640sqm for $2.5 million, with plans to build commercial offices.

72 Stephensons Road, Mount Waverley
A skin group leased the 130sqm converted residential building, which has a medical permit for 2 full-time practitioners, at $48,000pa.

Standout Kew Investment Sells for $5m-Plus
Investors are continuing to pursue Melbourne retail properties securely leased to quality tenants, with a rare freehold opportunity in the prestigious inner-east selling for more than $5 million.

Fitzroys’ Chris Kombi, Chris James and Ben Liu sold the commanding hospitality building at 26-28 Cotham Road, Kew - formerly home to Hellenic Republic, operated by high-profile chef George Calombaris and his hospitality group Made Establishment - following an Expressions of Interest campaign that generated more than 70 enquiries.

The $5,006,666 sale price reflected a sharp 3.1% net yield. The immaculately-refurbished 635sqm 2-storey building has a 6+6+6-year lease to chefs Ayhan Erkoc and Federico Perez Lopez for their Cotham Dining restaurant and Nazar Wine Bar, both operating under the 1 lease.

“The result is yet more evidence of the strong demand for quality investment-grade retail assets, despite the higher interest rate environment and a lot of negative market commentary,” Kombi said.

“Investors continue to put their faith in the resilience of bricks-and-mortar investments. Astute investors recognised the opportunity to acquire a well-presented, well-proportioned hospitality building in a central Kew Junction with a secure lease generating a strong rent return that will look all the more favourable as inflation continues to ease and interest rates normalise.

“Buyers are still there and willing to pay the price for high quality.”

The building is on a large 515sqm site with on-site parking and rear access, located within the Kew Junction Activity Centre.

Liu said the property presented as one of the best freehold investments with future upside opportunities in Melbourne’s inner east for 2023.

“The purchaser bought the property as an investment. They live in Kew and love the area, and can see its upside.

“We also received interest from land bankers looking to acquire a central Kew Junction property with excellent upside, located among leading local and national tenants with public transport at its doorstep and some of Melbourne’s most renowned schools, and assess their plans for the site while enjoying a strong income stream.”

The site is surrounded by Toscano’s, Leo’s Fine Food & Wine, Woolworths, Woodfrog Bakery, Commonwealth Bank and The Skinny Dog, while Xavier College, Methodist Ladies College, Trinity Grammar and others are nearby.

There is also excellent public transport at the doorstep, including the 109 tram and the 624 bus.

James said the inner east is seeing a number of medium and high-density developments being delivered, in response to ongoing demand from Melburnians to find a home in what is already one of the city’s most established and affluent areas, with excellent hospitality and lifestyle amenity, quality local and national traders and some of its best schools.

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.