Weekly Wrap

Fitzroys Weekly Wrap - 1st March 2024

Posted on 01st March 2024

84 Glenferrie Road, Malvern
The vacant double-storey building home to a former NAB bank branch sold for $6.75 million to a hospitality operator with plans for a new restaurant with a rooftop bar.

245 Glen Huntly Road, Elsternwick

A private investor bought the new 200sqm retail space occupied by Core Plus Fitness for $1.62 million, on a 6.1% yield. The space is on the ground floor of the new EVA apartment tower by Pitard Group.

27 Centreway, Keilor East

An investor paid $846,000 for the 140sqm building on a 191sqm site. It is leased to Tiana Bakery, returning $31,000pa plus outgoings and GST.

Level 1, 140 Bourke Street, Melbourne
French cultural body Alliance Francaise de Melbourne bought the 300sqm office, with a 300sqm terrace, for $4.5 million. The building was previously the Hoyts Cinema Centre and converted into strata office space by investor/developer Michael Drapac in 2012.

5/362-364 Main Street, Mornington

The vacant 150sqm office space sold for $825,000.

1608 Hume Highway, Campbellfield
A private investor bought the 4,948sqm facility on a 16,550sqm Industrial 1-zoned allotment, home to earthmoving, mining and construction equipment provision company Komatsu Australia, for $12.25 million, on a 4.02% yield. Komatsu Australia’s lease brings $492,828pa.

Lot 2, 27-35 Cooper Street, Campbellfield

Genesis Property bought the vacant 13,540sqm site for $9 million, with plans to develop a new industrial unit complex. McMullin Property was the vendor.

33 Grandlee Drive, Wendouree

St John of God sold its 1,503sqm distribution centre for $3.93 million, reflecting a 5.54% yield, with a 7+5+5-year leaseback returning $220,000. The property was built and occupied by St John of God in 2007.

152 Como Parade West, Parkdale
Lowe Living bought the 3,500sqm hospital facility on 4,765sqm for $8 million. It was previously owned by developer Steller, and then owner-occupied by Calvary Healthcare while its Caulfield South hospital underwent development.

One of Melbourne’s Oldest Buildings Set for New Chapter
Operators have an opportunity to become part of the Melbourne CBD’s famous hospitality scene lineage with the offering for the lease of the former Oddfellows Hotel - one of the city’s oldest surviving buildings.

Fitzroys’ Franklin Gikas and Franklin Gikas, in conjunction with Mitchell Humphreys of Future Proof, are offering the building at 33-35 Little Lonsdale Street, bookending Madame Brussels Lane and Spring Place, on behalf of ISPT.

Expressions of Interest close 5pm Wednesday, 13 March.

Recently having undergone a light refurbishment, the building comprises 562sqm over 2 levels, plus rooftop terrace and spacious laneway beer garden.

“This is an incredibly rare landmark heritage hospitality opportunity in a prime position in the Melbourne CBD's dynamic East End,” Lockwood said.

“Operators have the chance to become part of the lineage of Melbourne CBD’s famous hospitality scene.” he said.

“There’s a lot of history in this building and we’re looking for a good operator to revive it. It’s suited to a mix of publican, restaurant, function space and bar and lounge operators. It’s ready for a new chapter.”

The building is surrounded by iconic eateries including Sunda, Gingerboy, Longrain, Ho Chi Mama, Daughter in Law, Bodega Underground, Florentino, Bombabar and Pellegrini’s.

It was constructed in stages between 1848 and 1853, started by carpenter Henry Charles Wills, who built a single-storey cottage with a carpenter’s yard for himself, before building a large house with a cellar and 15 rooms, part of which became what was known as the Odd Fellows Hotel.

It was associated with the Little Lon district, a notorious area associated with the city’s poorest residents, crime and prostitution. It was also home to many immigrant groups, particularly of Chinese heritage.

Along with many others in the city, the hotel lost its licence due to licenses reduction laws introduced in 1906, and closed in 1912. The building was then used as a furniture manufacturing workshop and in 1914 bought by well-known missionary and social reformer Cheok Hong Cheong, and was occupied by Chinese cabinet makers until 1948 when it was acquired by the Commonwealth government.

The building was restored in the 1990s with the interiors refurbished for commercial use, an extension was added at the rear over 2005 and 2006 and the building was converted to a bar and restaurant. The building’s original façade remains largely intact, standing as an incredibly rare demonstration of the commercial buildings once common in the city, in this case in the Colonial George style.

Gikas said, “The Melbourne CBD continues to undergo a post-COVID period of renewal.”

“The recession of the 1990s was followed by innovation and new business activity. We’re seeing a similar pattern of new hospitality venues opening, laneways being activated and inner-city living taking off again,” he said.

“Over the past year we’ve seen CBD pedestrian numbers rebound and exceed 2019 levels. Hospitality venues have reported increased bookings through the week and Thursday has become the new Friday as workers begin to wind down from their week in the office. We’re then still seeing the usual influx of visitors on Friday nights and across the weekends, supported further by the return of international students to the city.”

Prime Smith Street Opportunity Leased to Global Retailer
A striking investment opportunity leased to global footwear giant Converse on world-famous Smith Street has hit the market, as the area north of Johnston Street moves through a period of transformation.

Fitzroys’ Ervin Niyaz and Shane Mills are marketing Shops 1-3, 397 Smith Street, going to auction on Thursday, 7 March at 12pm on site.

Expectations are of $2.4 million-plus.

The property comprises an expansive single-storey floorplate of 365sqm - effectively three combined shops - with an open-plan retail showroom, office, rear storage, and staff amenities, at the corner of Smith and Kerr streets with a high-exposure frontage of over 39.8m.

It is leased to Converse, who have been in occupation for over 20 years, currently returning $148,000 per annum plus outgoings and GST.

Valuable Commercial 1 zoning permits a variety of uses.
“This is a rare Smith Street investment opportunity of this size, and of this nature in this location. There are few bigger international names in the precinct than Converse,” Niyaz said.

He said the dynamic precinct is surrounded by extensive redevelopment and rejuvenation as well as Smith Street’s world-famous offerings of cafés, restaurants, bars and retailers.

Smith Street was named as influential publication Time Out’s “Coolest Street in the World” in 2021. Meanwhile, vacancies along the bustling hospitality and lifestyle strip have fallen to their lowest in several years as Melburnians continued to again embrace shopping, dining and eating out. According to Fitzroys’ latest Walk the Strip report, vacancies on Smith Street now sit at just 4.8%.

Mills said Yarra Council has promoted significant development throughout Fitzroy and Collingwood in recent years, with a large number of major projects in different stages of planning, construction and completion. The property is located nearby Tim Gurner’s residential project at 368-374 Smith Street, and between Pellicano’s 11-level commercial office development and ByUrban’s 8-level mixed-use development, both currently under construction.

“The redevelopment is really transforming this area to the north of Johnston Street - it’s really coming back to life,” Mills said.

“More people want to live, work and play in highly accessible areas with quality lifestyle attributes, and there’s been a surge in residential and commercial development in the area that is further underpinning the viability of Smith Street across all hours,” he said.

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.