Fitzroys agents Shane Mills and Ervin Niyaz sold 74 Smith Street, home to Smith Kebabs, on behalf of a private investor.
The sale price reflected a very high land rate of $11,258 per sqm.
A local private investor was the purchaser.
The property comprises a three-storey 170sqm freehold building with ground-level takeaway kebab restaurant, basement preparation and storage and bedrooms on the upper level. It was offered with more than five-and-a-half years remaining on the lease with five-year option to longstanding tenant Smith Kebabs, currently returning $67,237 per annum plus outgoings and GST,
“This was a really competitive campaign, with buyers looking to secure an excellent set-and-forget investment in the prime of one of Melbourne’s best lifestyle precincts. That was reflected in the sharp yield and high land rate,” Mills said.
“The ongoing interest rates rises have failed to deter investors when it comes to bricks-and-mortar assets with strong and secure income streams that are well-located in Melbourne’s shopping strips. They’re seen as a safe investment amid share market and residential market volatility.”
Niyaz said the buyer liked that the tenant complements the busy nightlife on Smith and Gertrude Streets.
Smith Street, named the World’s Coolest Street in recent years by influential global publication Time Out, and together with Gertrude Street forms an iconic hospitality and nightlife offering. The property is surrounded by some of Melbourne’s best bars, pubs and restaurants, with major traffic generators Fitzroy Beer Garden, Yah Yah’s, New Guernica, Caz Reitop’s Dirty Secrets, The Grace Darling, Builders Arms Hotel, Wabi Sabi Salon, Maha North, Huxtaburger, and many more in immediate proximity, Niyaz said.