Weekly Wrap

Fitzroys Weekly Wrap - 10th May 2024

Posted on 10th May 2024

145-167 Murray Road, Colac
A private investor paid $5.25 million for the 4,459sqm retail building, which is occupied by Kmart’s K Hub and on a 7,823sqm site. Kmart has a 3-year lease with 3-year options to May 2036.

280 Lygon Street, Carlton

An investor paid $2.126 million for the 310sqm 2-level building, which is occupied by Zeus Street Greek on a 7-year lease with options to 2043, returning $93,150pa plus GST.

211 Lygon Street, Carlton

A local investor bought the 217sqm shop and dwelling leased to The Acai Company Lygon for $1.282 million. The Acai Company Lygon has a 3-year lease and the property returns $60,332pa plus GST.

951 Centre Road, Bentleigh East

A local investor bought the 70sqm building on a 250sqm site for $905,000, on a 5.23% yield. The Foot & Ankle Clinic has a 10+5+5-year lease returning $49,000pa.

703 Whitehorse Road, Mitcham
A local investor bought the dual-tenanted 262sqm corner property for $890,000, which returns $47,000pa net.

G.02/49-51 Wellington Street, St Kilda

The 199sqm office unit was leased at $65,320pa.

73 Old Dookie Road, Shepparton
An international investment group acquired the 5,786sqm office, warehouse and workshop facility on a 16,650sqm site for $7 million, reflecting a 5.89% yield. ASX-listed Cleanaway has a 12-year lease until November 2032, with options to 2044, returning $412,589pa.

8B Margaret Street, Oakleigh

Offered with vacant possession, the 343sqm warehouse and first-floor office with 4 on-site car parks sold for $1.7 million.

15/3 Westside Avenue, Port Melbourne

The 95sqm office and warehouse sold for $420,000.

478-484 High Street Road, Mount Waverley
The 4,791sqm church site, used by the High Street Road Uniting Church and zoned General Residential, sold for $9.35 million. It has an existing building area of 1,350sqm.

82 Beach Street, Frankston
An owner-occupier bought the 223sqm fully-refurbished building, which has numerous consulting rooms and reception area and is on an 845sqm site, for around $2.15 million.

42 Fitzroy Street, St Kilda

The 37-room Tolarno Hotel sold to a local investor for around $6 million. The hotel is leased to La Vie Hotels while the restaurant is vacant.

Expanding Owner-Occupiers Drive $2.33m Industrial Auction Sale
Owner-occupiers continue to dominate Melbourne’s sub-$5 million industrial market, with multiple businesses competing at the auction of a versatile inner-north warehouse facility in the latest sale.

Fitzroys' Marco Sandrin and Brent Glassford sold 2-4 French Street, Coburg on behalf of a private owner following a campaign that generated enquiry from a number of owner- occupiers, as well as some investors.

Multiple bidders at the highly competitive auction pushed the price to $2.33 million.

The 900sqm corner office and warehouse facility comprises a brick building with ground- level corporate office, two warehousing areas, and multiple roller doors with on-site parking on a 1,100sqm site zoned Industrial 1.

It was offered partially leased until December 2024, returning $36,000 per annum.

Sandrin said a local owner-occupier with multiple buildings nearby bought the property in an expansion move.

“There were multiple groups that enquired and competed at the auction that were looking to expand, from businesses in Brunswick looking to expand outwards, to the purchaser who is in the immediate area.”

Glassford said the sub-$5 million market has been heavily influenced by owner-occupiers recently.

“Owner-occupiers have been the most active buyers in the market, given the uplift in rentals across the market,” he said.

“This buyer profile is securing existing assets in core industrial locations with great access to the current workforce, major road networks and customer base. In this case, the site offers easy access to the M80 Ring Road and the Tullamarine Freeway and CityLink.

“We continue to see vacant properties, and properties with short weighted average lease expiries attract heated competition amongst owner-occupiers.”

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.