Weekly Wrap

Fitzroys Weekly Wrap - 5th April 2024

Posted on 05th April 2024

175 Acland Street, St Kilda
An investor bought the home of Veludo Bar for $3.14 million on a 5.8% yield. The 380sqm 2-level venue is on a 321sqm Commercial 1-zoned site and has a renewed lease to 2030 with 3 5-year options, returning $194,780pa plus GST.

25 Mason Street, Newport

A local investor bought the 298sqm building on a 385sqm site for $1.725 million. It is leased to liquor store Cellarbrations until the end of September 2024, returning $45,600pa.

123 Maling Road, Canterbury

A local investor paid $1.46 million for the 157sqm building, which is occupied by The Good Food Collective on a new 5+5+5-year lease returning $81,264pa plus GST.

102 Lightwood Road, Noble Park

The vacant retail building on a 299sqm site sold for $620,000.

9 Meaden Street, Southbank
A local owner-occupier bought the 772.5sqm 3-level property for $3.1 million. It has 6 secure and 2 external on-site car parks.

2/29 Princes Highway, Dandenong

Offered with vacant possession, the 145sqm ground-floor office with 3 parking spaces sold for $640,000.

35 Flockhart Street, Abbotsford
Fund manager Forza Capital sold the 4-level car park site on the Yarra River for $14.6 million. The 3,880sqm property has 470 parking bays and is zoned Industrial 1.

7/8 Adina Court, Tullamarine

A local builder bought the 1,352sqm Industrial 1-zoned site for $1.16 million. It has approval for a 1,689sqm office and warehouse with 10 on-site car spaces.

1 West Circuit, Sunshine West

The 400sqm office, showroom and warehouse property sold for $990,000.

23 Maleela Avene, Balwyn
A consortium of investors acquired the vacant seniors living facility, known as Aveo’s Balwyn Manor, for $13 million, and has lodged plans for a 3-storey building with 31 apartments and 2 basement parking and storage levels.

18-20 Rutland Street, Box Hill

A developer paid $12.25 million for the 1,218sqm site, with plans for a mixed-use development.

36 Tinks Road, Narre Warren
A private investor acquired the childcare centre property from a childcare fund for $6.1 million. Where We Grow Early Learning occupies the 2,019sqm site on a 15-year net lease to 2037 with options to 2067.

1046 Howitt Street, Wendouree

An investor paid $3.21 million for the 507sqm purpose-built facility on a 1,206sqm site, which is occupied by allied health clinic Lake Health Group on a brand-new 10-year net lease that returns $157,558pa plus GST.

8-10 Dimar Court, Dingley

A local not-for-profit group paid $1.917 million for the 701sqm accommodation complex on a 1,385sqm, with plans to occupy.

519-521 Station Street, Box Hill

Singapore-based Kinderland Early Learning leased the 170-place childcare centre within the Sky Square Tower for 15 years at $545,700pa.

Lively Auction Sees Melbourne’s Prime Shopping Strip Market Pass Another Test
Melbourne’s prime shopping strip investment market has passed another early test for 2024, with the home of a new local favourite in what Time Out declared one of the “World’s Coolest Neighbourhoods” selling for $3.38 million at a lively auction.

Fitzroys’ Chris Kombi, Ervin Niyaz and Ben Liu sold 98-100 Lygon Street, Brunswick East under instruction from Advise Transact, after a campaign that generated more than 70 enquiries and culminated with four bidders competing at the auction.

The sale price reflected a tight 4.7% net yield. The property has a 10-year lease plus options to highly-experienced hospitality operators trading as popular new venue Maggie’s Snacks & Liquor.

“Investors recognised this as a set-and-forget inner-city gem,” Kombi said, adding that the campaign attracted both investors and landbankers.

“The result was a strong campaign and a fiercely contested auction with four bidders competing,” he said.

“Investors were attracted to the high-quality new fit-out and tenancy covenant, with a 10-year lease to renowned hospitality operators who have quickly proven their credentials again with the early success of their new venture.”

Maggie’s Snacks & Liquor is the newest hospitality offering to Brunswick East, which influential global publication Time Out recently ranked as sixth on its list of “Coolest Neighbourhoods in the World”.

Lygon Street, Brunswick East is home to an array of hospitality institutions that draw consistent and loyal patronage from the neighbourhood and across wider Melbourne. Nearby are Old Palm Liquor, Bahama Gold, The Alderman, Bar Idda, 400 Gradi, The B.East, and Mr Wilkinson, just to name a few.

“The strip has really emerged in recent years to become a key part of Melbourne’s world- famous inner north hospitality and culture offering,” Kombi said.

He added, “The surging location has multiple residential towers that have boosted the captive local catchment and local trade, which will benefit further in the coming years from more low, medium and high-density development in the pipeline.”

Niyaz said, “This offered the extremely rare chance to acquire 345sqm of prime inner-north land with a dominant street frontage of over 10 metres to Lygon Street.”

The location also offers excellent connectivity and exposure with trams 1 and 6 stopping directly outside the property and 22,000 cars passing by daily.

Melbourne’s prime shopping strip market opened 2024 with a strong result, with the Lygon Street, Carlton newsagency in the heart of the famous precinct selling on a tight 4% net yield. Fitzroys’ Mark Talbot and Shane Mills sold 325 Lygon Street, Carlton for $1.78 million. The property’s current 7-year lease ends in January 2025 with 2 further terms of 5 years each.

Five Bidders Push Dandenong Showroom $700k Beyond Reserve
Five bidders have fiercely contested the auction of a high-exposure Dandenong showroom, which sold under the hammer for $3.18 million - more than $700,000 above reserve.

Fitzroys’ Tom Fisher and David Bourke sold 147 Lonsdale Street, Dandenong on behalf of a private owner, following a campaign that generated more than 50 enquiries.

The property was offered with a short-term lease to Drummond Golf. It comprises a 720sqm open-plan showroom on a dominant 1,309sqm site with nearly 21 metres of frontage to the busy Lonsdale Street/Princes Highway thoroughfare, with favourable Comprehensive Development Zone - Schedule 2 zoning.

The purchaser is a New Zealand-based clothing group that will occupy the property.

“We had really strong interest and competition between investors and owner-occupiers given the site’s high exposure to the southern gateway of the Dandenong CBD, which pushed the sale price $700,000 beyond the reserve,” Fisher said.

He said the short-term lease provided plenty of flexibility and a strong holding income.

“The proposed works for the Dandenong underpass at the site next door offered intrigue. There’s huge potential upside for further site activation and exposure through the proposed Cheltenham Road extension.

“The purchaser now has an excellent high-profile showroom in the bustling Dandenong retail and commercial precinct with even further upside to exposure.”

The works are among those slated to form the next phase of the Victorian Government’s multi-billion-dollar Level Crossing Removal Project. They will see the extension of Cheltenham Road below the train line, to meet Lonsdale Street, effectively making 147 Lonsdale Street a corner site.

Bourke said the substantial interest from owner-occupiers was a big vote of confidence in the property’s location.

“The site is at the gateway to the Dandenong CBD and close to Dandenong Square Shopping Centre, Dandenong Market, and a host of lifestyle attractions, already placing it right amongst the action. The further works will enhance the exposure of the site, which already provides easy access to major arterials including Princes Highway, Monash Freeway and Eastlink, as well as Dandenong train station,” 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.