High-Profile High Street Retail Passes Melbourne Market Test
Investors from around Australia have sought a securely-leased, high-profile High Street, Northcote asset in a test of Melbourne’s commercial property market.
Chris Kombi and Ervin Niyaz of Fitzroys sold 449 High Street for $2 million to a local investor at a tight 5% yield. The immaculately-presented 230sqm property has a commanding corner street frontage of 26.7m, and comprises a fully self-contained ground floor retail area.
The property is leased to popular café Bicycle Thieves on a 7+7+7-year lease returning $100,785pa. Bicycle Thieves opened in October 2018 and is run by Chris Griffiths and Shri Bhagwandas, whose successful eateries include Hawthorn’s Bawa and Cremorne’s Sloane Ranger.
“Being a strata-titled, inner-city retail property in a high-profile position with a quality tenant, the campaign presented an early indicator of the Melbourne commercial investment market in 2020,” Kombi said.
“The high volume of enquiry from around Australia and the strong sales result shows retail properties across Melbourne’s strips continue to present a compelling investment proposition.
“There has been a lack of quality retail and commercial properties coming to the market offering secure leases and main street exposure.”
Kombi said the historically low interest rate environment has deepened the pool of investors looking to secure income-producing investments.
“Strata-titled properties have grown in focus, as they easier to manage with an owners corporation overseeing maintenance, and present low land tax liabilities that don’t cut into the return. This property offered the added benefit of being only three years old, offering strong tax depreciation benefits and further enhancing its investment credentials.”
Melbourne CBD Strata Office Suites Sell
Several strata office suites in the Melbourne CBD have quickly changed hands.
A 252sqm 3rd level strata office at 620 Collins Street sold for $2.15 million to an owner occupier, while in the McPherson’s building at 546 Collins Street an offshore investor bought the Unit 301 of 129sqm for $1.7 million, and a local owner occupier paid $1.3 million for the 102sqm Unit 202. The 4-storey modernist building was built in 1936 for machinery merchants McPherson’s Ltd.
At 430 Little Collins Street, within the Normanby Chambers building, the vacant suites 210-216 sold together for $1.952 million.
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 2020 Fitzroys.