Weekly Wrap

Fitzroys Weekly Wrap - 9th June 2023

Posted on 09th June 2023

117 Upper Heidelberg Road, Ivanhoe
The owners of Chemist Warehouse paid $5.17 million for the 415sqm freehold of its Ivanhoe store, which is on a 749sqm site.

12 Chapel Street, Windsor
The 155sqm building on a 173sqm site sold for $2.2 million.

394-396 Burke Road, Camberwell
An investor paid $1.147 million for the 352sqm building, which is leased to cake and cookie decorators Miss Biscuit and returns $53,044pa plus outgoings and GST.

297 Broadway, Reservoir
Offered for the first time in 35 years, the 117sqm vacant shop and dwelling, on a 220sqm site, sold for $910,000.

730 Burke Road, Camberwell
The 208sqm building with a hair salon fit-out was leased for $69,500pa.

50 Boundary Street, South Melbourne
The 2-level 355sqm building on a 246sqm site with 5 on-site car parks sold for $2.657 million to an investor, on a 4.5% yield. It has a 2 year lease from November 2022 returning $121,025pa.

18-20 King Street, Blackburn
The 1,306sqm office and warehouse on a 1,901sqm Industrial 1-zoned site with 27 on-site parking spaces sold for $5.3 million. It is occupied by a multinational food industry tenant.

121 Langridge Street, Collingwood
The 240sqm warehouse, currently used for music production, sold to an owner-occupier for $2.06 million.

74 Henderson Road, Clayton
The recently refurbished 602sqm industrial building sold for $1.89 million to a local owner-occupier intending to relocate their steel fabrication business.

26 Metropolitan Avenue, Nunawading
The vacant 300sqm office and warehouse sold for $1.5 million.

3/35 Rooks Road, Mitcham
The 302sqm office and warehouse with 2 storage areas and 7 car parks was leased on a 2+2-year term at $45,000pa.

443-445 Nicholson Street, Carlton North
Zoned Neighbourhood Residential, the cleared triple-fronted 836sqm site sold to a local developer for $2.675 million, or $3,200/sqm.

$4m-Plus Expected for Brighton Corner Site Opposite Coles
More than $4 million is expected for a Bay Street corner site, with a Victorian residence with home office and studio, opposite the landmark Coles development in blue-ribbon Brighton.

Fitzroys’ Mark Talbot and Tom Fisher, in conjunction with Julian Augustini of Hodges Brighton, are marketing 388 Bay Street, Brighton with vacant possession via Expressions of Interest closing 20 June.

The substantial 760sqm block on the corner of Bay Street and Male Street comprises an immaculately-presented 5-bedroom Victorian residence and a separate 2-storey studio, office and retail building, which Talbot said offers the flexibility to be reconfigured and occupied or offered to the leasing market.

The second building is currently used as the home for Brighton Antique Prints and Maps.

The property has a total building area of 305sqm and has a large frontage to Bay Street of more than 17m, and of 45.7m to Male Street.

“This is an incredibly rare opportunity to acquire a high-exposure corner property in blue-ribbon Brighton. Brighton real estate is amongst the most tightly-held and prestigious in Melbourne,” Talbot said.

“We’re expecting people interested in living in the property and running a home-based business from the side building, or even leasing that out and earning an income stream.
“We’re also expecting interest from medical users. The property’s zoning suits medical use and the house offers an easy conversion prospect to well-presented premises with several consulting rooms.”

The property is zoned General Residential - Schedule 2, which suits uses including medical, allied health, home-based business and more (STCA).

Talbot said the property is in a fantastic location to set up a business.

“It’s incredibly rare substantial Brighton corner sites come up for sale, let alone in highly activated positions like this. The Coles development has really reshaped Bay Street. It’s created another prime section of the strip,” he said.

“Bay Street’s really come into its own as shopping and lifestyle strip over recent years. It’s not a ‘poor cousin’ to Church Street anymore.

“The strength of Bay Street has recentred the suburb. More people in Brighton and the surrounding suburbs gravitate towards Bay Street and it means there’s more demand and expectation for shopping, dining and medical offerings on the strip.”

According to Fitzroys’ Walk the Strip report series, Bay Street, Brighton has seen vacancies come down to a long-term low of 5.9%.

Fisher said the site is in a “really exciting” location.

“It’s close to a lot of popular national and local operators, including Coles, Chemist Warehouse, Australia Post, Flight Centre, Palace Cinemas, Hotel Brighton, Mr and Mrs P, Rocksalt and more,” he said.

“Bay Street, Brighton serves one of Melbourne’s most prized catchments with prestigious schools, which has maintained a strong demographic with high disposable income, supporting strong retail trade.

“This site’s also really accessible. There’s excellent parking options with undercover parking opposite within Coles, and the site also offers easy access to the CBD via Nepean Highway and it’s walking distance to North Brighton train station.”

Coles Divests Camberwell Supermarket
Supermarket giant Coles has sold a Camberwell supermarket it developed in 2018, for $37 million to private investment platform Trident Capital Group.

The sale price of the 4,000sqm property at 725-757 Riversdale Road reflected a 4.42% yield.

The property includes a Liquorland and 2 specialty shops.

Both Coles and Woolworths have been recently selling off retail assets they have developed across the eastern seaboard. Woolworths last month sold the 6,051sqm Cranbourne West Shopping Centre to Sydney-based investment firm Mintus for $41.8 million, on a 5.36% 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 2023 Fitzroys.