Weekly Wrap

Fitzroys Weekly Wrap - 16th February 2018

Posted on 16th February 2018

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Retail sale, 360A Brunswick Street, Fitzroy
The 95sqm ground floor shop in arguably Melbourne’s premier lifestyle and hospitality precinct sold for $1.45 million, at a benchmark floor rate of $15,260/sqm, and 5.3% yield. It has a new 5+5-year lease to Select 7, returning $77,000pa plus outgoings.

Retail sale, 42 Mount Eliza Way, Mount Eliza
The hair and beauty salon attracted bids from four parties at auction, selling for $970,000. The 147sqm site has a 120sqm retail space and transacted at a 2.9% yield, with a three-year lease plus option.

Retail sale, 159 Williams Road, South Yarra
The 64sqm Hawksburn Village home of Capelli Lunghi Hair traded for $850,000 in an off-market deal, at a 4.2% yield.

Retail/industrial sale, 11 Henry Wilson Drive, Capel Sound
A local investor picked up the Tradelink showroom and warehouse property for $1.15 million. The 2,028sqm site within the Rosebud Industrial Estate has a 707sqm building and is leased to Tradelink until 2019 with another five-year term, with the sale price reflecting a passing yield of 5.63%.

Retail/industrial lease, 75 Arden Street, North Melbourne
A motorcycle company is moving to the 300sqm showroom and warehouse corner property after 30 years on the CBD’s Elizabeth Street. It will pay a floor rate of $173.33/sqm, at $52,000/sqm net.

Retail lease, 344-346 High Street, Northcote
Cash Converters signed a six-year lease renewal for the double-fronted building, which has a 285sqm shop and 188sqm office and storage space. Rents in the street range from $25/sqm to $55 per sqm net. The business has traded from the site for the more than a decade.

Land/development sale, 265-271 Racecourse Road, Kensington
A Vietnam-based developer has made their Australian market debut with the $6.025 million purchase of an 842sqm corner site with a permit for 41 apartments and ground-floor retail.

Land/industrial sale, 123-125 Como Parade, Parkdale
A local developer picked up the 889sqm corner site, which has a permit for 10 two-bedroom apartments over two levels, for $2.125 million under the hammer. Sold at a land rate of $2,390/sqm and unit rate of $212,500/sqm.

Office sale, 1403-1405 Burke Road, Kew East
An owner occupier paid $2.9 million for the vacant two-level 513sqm building, on a Commercial 2-zoned site of 371sqm with 10 car parks.

Office sale, Units 1 & 2, 598 St Kilda Road, Melbourne
A local owner occupier acquired the vacant units on separate titles in one line for $1.5 million, at a building rate of $6,726/sqm.

Industrial sale, 6 Duke Street, Abbotsford
The Moondog Brewery has sold for $2.26 million in an off-market deal, at an indicative sub-3% yield. It has a five-year lease to the boutique brewery returning $82,000pa net.

Talking points

Co-working space on the march:
Major co-working space player Hub Australia now has claims to Melbourne CBD bookend sites, signing a lease over 2,700sqm across the top three levels of Charter Hall’s historic 1 Nicholson Street building, according to the Australian Financial Review.

The new site, which will open in mid-2019, will be called Hub Parliament Station and follows the opening of the 4,000sqm Hub Southern Cross two years ago at the CBD’s west end.

The sector grew by almost 300% between 2013 and 2017 to more than 300 sites, and research suggests as much as 70,000sqm in requirements are currently in the market.

Built in 1958, the 18-level, 84m-high 1 Nicholson Street building boasted the city’s first glass curtain wall façade, and for a time was Australia’s tallest building.

Hospitality opportunity part of Footscray Park transformation: A prized Footscray Park site, with stunning river and park views and looking out towards Flemington Racecourse, is being offered to a hospitality operator to create a new café. 

Fitzroys is seeking Expressions of Interest for the site at the Mills Close entrance of Footscray Park on behalf of Maribyrnong City Council, with the project aiming to create a new destination within the park as Council looks to revitalise the surrounds, and as part of its Footscray University Town partnership with Victoria University. 

The operator would be given significant control to remodel the existing 155sqm building into a café/restaurant space, with potential for a large outdoor seating area and open plan dining options available. A second building offers a potential further 83sqm. A lease term of up to 15 years is available. 

It is envisioned that the new café would cater to local residents and students of the adjacent University, as well as visitors to the park and Maribyrnong River trail.

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.