B12 & B13, 2A Westall Road, Springvale
Private investors traded the 586sqm strata-titled industrial investment, which sold for $2.014 million on a 5.25% yield. Ambulance Victoria occupies 490sqm of the property on a 7+7-year lease from April 2020 with 7 car spaces, and the balance is leased to Promotional Clothing on a 2+2-year term from August 2022 and includes 2 car spaces.
10 Frank Street, Mornington
The vacant 198sqm warehouse sold for $720,000.
8/16 Dunstans Court, Thomastown
The 102sqm warehouse unit sold for $460,000. G&J Pritchard Constructions Pty Ltd occupies the property on a 2+2-year lease that commenced in December 2021 and returns $19,750pa.
89-103 Dohertys Road, Laverton
Events company Harry the Hirer committed to a 5-year lease over the 10,113sqm warehouse, which is on a 26,000sqm site and was formerly occupied by Allied Sea Freight. It will pay more than $1.3 million per annum.
12-114 Cubitt Street, Cremorne
Baby clothes maker Pure Baby paid $7 million for the 3-level 622sqm building, which is on a 600sqm site with 18 parking spaces.
4A Craine Street, South Melbourne
The 3-level 415sqm building with warehouse and garaging on the ground floor and office space above sold for $1.3 million, on a 6.15% yield.
189-191 Lonsdale Street, Melbourne
The 3-storey, 467sqm building with an untenanted nightclub in the CBD’s Greek precinct sold to a hospitality group for $9.1 million. It has 2 ground floor retail tenancies and currently returns $122,731 plus outgoings and GST. Between 1897 and 1907, the building served as the Melbourne Dental Hospital.
154-156 Central Avenue, Altona Meadows
The 197sqm building on a 1,405sqm site occupied by Red Rooster sold for $2.962 million, on a 4.46% yield. It has a 10-year net lease to 2030 with options to 2040.
2091 Frankston-Flinders Road, Hastings
The 308sqm Red Rooster restaurant-occupied building on a 1,798sqm corner site sold for $2.35 million, on a 4.72% yield. It has a 7-year lease to Red Rooster to August 2026 plus options to 2041.
131 Toorak Road, South Yarra
Lulo Investments bought the 132sqm building on a 147sqm site for $2.416 million, on a 3.57% yield. Florist Victoria Whitelaw Beautiful Flowers has occupied the property for more than 20 years.
100 Auburn Road, Hawthorn
A local investor bought the 100sqm building on a 226sqm sqm site opposite the Auburn Hotel for $950,000, on a 3.6% yield. Longstanding tenant Acorn Window Cleaning has 12 months to run on the first term of a 3+3-year lease, which returns $35,138pa plus outgoings and GST.
2/132 Inglis Street, Ballan
The 90sqm shop sold with vacant possession for $630,000.
294-298 Swan Street, Richmond
A developer paid around $15 million for the 1,313sqm Commercial 1-zoned site at the corner of Mary Street. Red Rooster and the Back in Motion Health Group occupy the property for a total rental return of $304,000pa.
Trophy Corner Investment In The Heart of South Yarra
Local and overseas investors are showing interest in an incredibly rare Toorak Road, South Yarra trophy investment opportunity that has hit the market, in the next test for the prime Melbourne shopping strip market in 2023.
Fitzroys’ Lewis Waddell, Chris Kombi and Ben Liu are marketing 109-111 Toorak Road & 1A-1C Murphy Street, South Yarra, which will go to auction on Friday, 13 October at 1pm on-site, on behalf of a local family that has held the property for almost 50 years.
The freehold building comprises 390sqm of building with 5 shops plus a 1st-floor office and has an expansive street frontage of over 37m in the absolute prime trading section of Toorak Road, South Yarra.
The multi-tenanted investment is underpinned by a renewed 5-year lease from March 2024 to national real estate group McGrath and offers an estimated fully-leased income of $250,000 net per annum.
Expectations are in the high $4 millions.
“This is an incredibly rare opportunity to buy a corner like this in South Yarra, as families typically hold onto them for generations,” Waddell said.
“The property is in the absolute prime trading section Toorak Road and on the corner of a prestigious street in Murphy Street, making it an ideal trophy investment. We’ve been receiving interest from local and overseas investors looking for a generational, long-term holding with secure income.”
According to Fitzroys’ latest Walk the Strip report, vacancies in Toorak Road, South Yarra have come down again in 2023 to 5.6%, and have nearly halved since 2021.
“We’re still seeing investors put their faith in income-producing bricks-and-mortar assets at a time of share market and residential market volatility,” Kombi said.
“Higher interest rates clearly haven’t deterred investors from pursuing high-quality opportunities.”
Fitzroys has recently sold multiple assets in the absolute prime of Melbourne’s high-performing shopping strips. Kombi and Waddell sold 1014 High Street, Armadale for $3.525 million, on a sharp 3.4% yield, and Fitzroys has also sold 35 Church Street, Brighton, home of big 4 bank NAB, for $7.15 million on a 3.5% yield and land rate of $24,826/sqm.
Australia’s First Skyscraper Fetches $155m
Harry Stamoulis has acquired the 19-storey building at 1 Nicholson Street, on the edge of the CBD and home to explosives manufacturer Orica, for $155 million in one of the bigger deals in the city over the past year.
The building was acquired from the $3.1 billion whole fund Charter Hall Direct Office Fund, which is reshaping its portfolio through the divestment of older assets.
Located at the corner of Albert Street, the building was completed in 1958 as the headquarters of Imperial Chemical Industries (the forerunner to Orica) and was an early example of modernist international style of architecture. It was designed by Bates, Smart & McCutcheon and is still home to the design firm’s successor, Bates Smart.
Dandenong South Warehouse Sells For $31.5m
A national hardware products supplier has paid $31.5 million for a freestanding office and warehouse in tightly-held Dandenong South.
The 23,476sqm site at 25 Glasscocks Road has a 13,154sqm facility with a mix of docks and on-grade doors, and 12m canopy for all-weather loading.
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.