Weekly Wrap

Fitzroys Weekly Wrap - 23rd June 2023

Posted on 23rd June 2023

67-69 Bridge Road, Richmond
The 313sqm landholding in the Richmond Hill lifestyle precinct, comprising a well-presented double-shop/showroom, sold for $3.3 million. The sale price reflected a 2.38% net yield and land rate of $10,500/sqm.

46-56 Lonsdale Street, Dandenong

The Kia and Nissan car dealership property, on a 6,466sqm site, sold to a local owner-occupier for $8,888,888. It currently returns $736,964pa.

590 Burwood Road, Hawthorn

A local private investor paid $2.51 million on a 3.5% yield for the 188sqm corner showroom occupied by Melbourne HiFi. It is on a 445sqm Commercial 1-zoned site and leased until the end of April 2026 plus option and returns $87,819pa.

475-477 Keilor Road, Niddrie

A local investor bought the vacant 358sqm building on a 541sqm Commercial 1-zoned site for $2.5 million.

374 Chapel Street, South Yarra

The 203sqm building, occupied by Mexican fast food outlet Zambrero, on a 227sqm site sold for $2.15 million on a 3.67% yield. Zambrero has a new 5-year lease with no option that currently returns $78,825pa plus GST.

38-40 Dudley Street, West Melbourne
The headquarters of the Australian Chiropractors Association (ACA) sold to a local buyer in the professional services sector for $2.49 million. The ACA had owned the 251sqm, 2-storey terrace building since 2005.

1038 Dandenong Road, Carnegie

A private investor paid $2.15 million for ground-floor office and showroom, on a 5.29%. It is occupied by Jan Marini Skin Research Australia on a new 5+5-year lease and returns $113,850pa.

450 Smith Street, Collingwood

A self-managed super fund investor bought the 313sqm ground floor office/retail corner property with short-term holding income for $1.4 million.

456-458 Hammond Road, Dandenong South
A local owner-occupier bought the 2,948sqm office and warehouse property for $9.1 million.

17 Walkers Road, Nunawading

The 987sqm office and warehouse on a 1,084sqm Commercial 2-zoned site, home to Ambulance Victoria’s Eastern Metro fleet support centre, sold for $3.885 million on a 4.23% yield. Ambulance Victoria has a 10-year lease to 2030 with options to 2040, returning $164,234pa plus GST.

4 & 5, 51 Power Road, Bayswater

The 674sqm office and warehouse property sold for $1.48 million. Steel product manufacturer True Metal has a month-by-month lease.

3/30 Triholm Avenue, Laverton

The 246sqm unit sold for $645,000.

20-22 Smeaton Avenue, Dandenong South

Pact Heating & Cooling leased the 1,510sqm office and warehouse facility at $226,500pa.

100 Jersey Drive, Epping

The new 1,416sqm warehouse was leased at $220,000pa.

6-12 Warley Avenue, Cowes
The 4,053sqm Residential Growth-zoned site sold for $6.1 million, with approval for a 5-storey, 91-apartment development designed by Bruce Henderson Architects.

433 Police Road, Mulgrave
A local investor bought the McKinley Medical Centre for $3.6 million, on a 5.25% yield, from a local doctor who had owned the property for 35 years.

Boutique Standalone Richmond Building Hits the Market
Investors, owner-occupiers and land-banking developers have the opportunity to acquire an office building on an important site within a fast-growing section of the hugely popular Richmond market.

Fitzroys’ David Bourke, Lewis Waddell and Shane Mills are marketing 255 Mary Street, Richmond on behalf of a local family via Expressions of Interest closing Wednesday, 26 July at 3pm.

Expectations are of circa $5 million.

The property comprises a 3-level, freehold office building with 708sqm of lettable area, with an external balcony offering panoramic CBD views, plus 20 secure undercover car parks, on a corner parcel of 401sqm with prized Commercial 1 zoning. It offers excellent future development upside, with a preferred maximum building height of up to 28 metres (STPA), given the underlying land component’s Design and Development Overlay 27 (DDO27).

“This is a huge opportunity for investors, owner-occupiers and future developers to get into what’s a fast-emerging section within the hugely popular Richmond and Cremorne market,” Bourke said.

Waddell said, “We’re expecting interest from tech and start-up companies looking to get into arguably Australia’s hottest city fringe office market, alongside the likes of Seek, REA Group, Domain, Disney, Uber and Tesla. Investors can purchase with the comfort that there is ongoing huge demand for the Richmond and Cremorne market and very healthy rent levels.

“Businesses are wanting to attract the best talent and more and more Melburnians are looking to live, work and play in highly accessible areas with quality hospitality offerings.

“Landbankers and developers can assess their options for the site, which has sought-after Commercial 1 zoning, and they can likely lease out the property and secure a strong income while assessing their options for the site, which is in a fast-growing section of the Richmond and Cremorne market.”

Next door, at 300-304 Swan Street, Fortis is planning an 8-storey commercial building; nearby at 480 Swan Street Charter Hall is developing Australia Post’s new Melbourne headquarters, and the Agosta family has plans for a $350 million, 14-storey tower with 27,000sqm of space next door at 484-488 Swan Street, while Salta and Abacus Property Group have recently completed campus-style Industry Lanes project at 459 Church Street.

“The Richmond and Cremorne market has undergone significant transformation over recent years, becoming Melbourne’s own Silicon Valley, and is clearly continuing to grow. The hospitality offering and industrial characteristics sparked commercial development and attracted start-ups and tech firms, and businesses and developers continue to flock to the area,” Mills said.

“The site is in the prized Swan Street precinct, and this market is perhaps the pre-eminent example of an office market growing around one of Melbourne’s shopping strips.”

According to Fitzroys’ Walk the Strip report, Swan Street is home to one of the lowest vacancy rates in Melbourne and among the highest proportions of food and beverage of any strip. Cafés and eateries service the worker population of the booming Richmond and Cremorne office markets during the day, before the nightlife offering and sporting events which draw visitors from across Melbourne. Swan Street’s hospitality offering is underpinned by iconic venues and bars such as The Corner Hotel and The Precinct Hotel, plus a multitude of cafés and eateries.

Noble Park Industrial Site Sells for $20m
The Hargrave family has sold a circa-1.95ha industrial site in Noble Park for about $20 million.

The Hargaves had owned the 440 Princes Highway property for more than 20 years.

It comprises a 13,502 sqm warehouse on Commercial 2-zoned land, and is leased to packaging manufacturer Oji Fibre Solution, returning $986,946pa.

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.