Food and beverage-tenanted retail properties throughout Melbourne’s inner-north are attracting heightened interest, and delivering strong sales results for vendors of the prized assets.
An interstate investor purchased the property following a private sale campaign that generated enquiry from around Australia. Kombi, Yeh and Waddell acted on behalf of a private owner.
“Retail assets occupied by hospitality operators across the inner-north are held in high regard and increasingly represent an iconic Melbourne real estate holding,” Kombi said.
The quality two-storey shop and dwelling of 220sqm occupies a corner site of 148sqm, with a frontage of around 50m to Brunswick Street and Rose Street. The property is fully leased to two tenants and returns a combined rent of $105,370 per annum.
Kombi said the property presented a rare opportunity to invest in a tightly-held precinct just 2km from the CBD.
“Brunswick Street has built an enviable reputation as one of Melbourne’s most desirable destinations for exciting fashion and hospitality, and draws visitors from its immediate surrounds and across Melbourne,” he said.
“There is evidently a growing interest in food and beverage-tenanted offerings in strip locations across Melbourne’s vibrant and edgy inner-north.”
The sale price reflected a high land rate of $13,770 per sqm, and follows Fitzroys’ recent sale of 180 Brunswick Street, home of café Newtown Specialty Coffee, which achieved another remarkable land rate of more than $15,000 per sqm.
Fitzroys also recently sold the substantial double-storey retail freehold at 95-97 Smith Street, Fitzroy, for $4.575 million at a sharp 3.4% yield. More than 100 enquiries were received for the primely positioned double-storey building home to video game-themed nightspot Pixel Alley and bar Mr Wow’s Emporium.
Yeh said “Melburnians continue to move into, work and go out across the inner-city in growing numbers. Highly-regarded and popular lifestyle offerings such as Brunswick Street, Gertrude Street and Smith Street have been among the most popular destinations.
“A large number of office and residential developments are taking place nearby, which will boost trade and the immediate catchment of an area that already attracts strong crowds for breakfast and brunch in the morning, and for cafés, shopping, live music, bars and clubs through the day late into the night.”
Waddell said there continues to be strong demand across Melbourne’s inner northern suburbs for dual-income assets, which consistently offer excellent value for investors.
“Retail and commercial yields have tightened in recent years, and the added residential component can improve returns for investors, and often provide value-add opportunities.”