Weekly Wrap

Fitzroys Weekly Wrap - 24th April 2020

Posted on 24th April 2020

000 Retail 05

142 Main Street, Lilydale
The 500sqm building in the Lilydale retail precinct, on a 384sqm site next to Bunnings, sold for $1.675 million. It is leased until 2025 to RNG Lawyers with 6+6-year options.

360 Bell Street, Pascoe Vale
The 125sqm corner shop and dwelling on a 199sqm site sold for $621,500 with a 3+3-year lease to tattoo parlour Kings of Style from December 2018, returning $25,032pa with 5% annual rent increases.

36 Springthorpe Boulevard, Macleod
Within the Macleod Springthorpe Estate, the 70sqm shop sold for $372,500 with a lease to pizzeria Carbone’s Place until 2021 plus 5+5-year options, returning $25,500pa.

3 North Street, Ascot Vale
Viva Leisure leased an 811sqm, 2-level building for 5 years at $215,000pa plus outgoings.

90 Cumberland Road, Pascoe Vale
Bandwagon Store Pty Ltd leased the highly-exposed 152sqm corner property for its retail sale of packaged liquor and bar concept, for 3+7 years at $85,000pa plus outgoings and GST, with annual 4% fixed increases and market review at option. The property has 11 on-site parking spaces.

000 Offices 05

30 Inkerman Street, St Kilda
A local investor bought the 3-storey, 1,560sqm building known as Barkly House for around $6.5 million. Fully-leased, the building is on a 950sqm site with 17 parking spaces and returns $274,760pa net.

14-16 Prospect Street, Box Hill
Australia’s largest employment provider, Max Solutions leased 192sqm at Tenancy 5 on part of level 1 within the former Centrelink building in a 2+2+2-year deal at $84,500pa plus GST.

Unit 302, 91-95 Murphy Street, Richmond
A specialist dentist software company leased the fitted 95sqm strata office for 3 years at $475/sqm gross.

697 Burke Road, Camberwell
Allied Credit leased 253sqm for 3 years at around $520/sqm gross. Owner Vantage Property Investments completed a new fit out of the building last year.

24 Cromwell Street, Collingwood
Zip Diagnostics signed a 3-year lease for the 509sqm at $432/sqm gross. It will split the property to use part as a lab.

293 Camberwell Rd, Camberwell
Bakers Delight recommitted to 1,950sqm in the office building for 10 years. It has occupied the tenancy for 12 years and will undertake a refurbishment of the space to alter its existing configuration.

103 Lonsdale Street, Melbourne
NPCo leased 212sqm on level 2 at $650sqm/sqm. Gregmac Management Pty Ltd is the owner.

18-24 Ricketts Road, Mount Waverley
Pharmaceutical software company Corum Group leased 250sqm for 3 years at around $250/sqm net. Logistics group ESR owns the building.

424 St Kilda Road, Melbourne
CF Capital signed a 6-year lease for the 186sqm office at around $300/sqm gross.

64 Gwynne Street, Cremorne
ActivePipe leased 520sqm for 4 years at $640/sqm gross.

000Industrial 05

25-27 Pacific Drive, Keysborough
The 837sqm office and warehouse building, on a 1,341sqm site with 11 parking spaces, sold for $1.75 million with holding income of $71,030pa plus outgoings and GST.

35 Butler Way, Tullamarine
The vacant 661sqm building on an 893sqm site sold for $1.34 million.

1 Ovata Drive, Tullamarine
An owner occupier bought the 720sqm warehouse building, which has 2 levels of office and showroom space, for $1.23 million. The 1,072sqm site has 12 on-site parking spaces.

8/9 Greaves Street, Dandenong
The vacant warehouse sold for $448,000. It has a 185sqm building area and a further 50sqm mezzanine and storage area.

000 Specialised 05

1848 Geelong Road, Mount Helen
A local private investor bought the Goodstart Early Learning childcare centre for $4.275 million, at a 6.4% yield with 5% fixed annual rent increases. The 120-place centre is on a 3,187sqm site.

000 Talking Points 05

CBD Fringe Development Site Sells
The West Melbourne site incorporating the Sands and McDougall manufactory, slated for a hotel and office tower, is likely to be developed in separate parts after a portion sold for $9.5 million to a local buyer.

Joint owners, Resimax Property Group owner Aziz “Ozzie” Kheir, Probuild founder Phil Mehrten and developer Frank Palazzo, obtained planning permits last year for a 23-level, 190-room hotel and office complex for the entirety of the combined 102-108 Jeffcott Street and 355-369 Spencer Street site in West Melbourne, which has heritage listing.

The vacant Jeffcott Street portion has a 2-storey circa-1914 brick warehouse on a 920sqm site with a hipped roof and double-gabled façade, and has sold individually after the entire site was offered for sale. It is likely to be used for an apartment development.

The former Sands and McDougall factory building on Spencer Street would have been converted into offices under the approved plans, and the Jeffcott Street warehouse partially demolished.

Richmond Triple Treat
Melbourne’s city fringe office hub of Richmond and Cremorne continues to attract tenants, from major names in tech to smaller businesses working from home office-style premises.

Fitzroys Agency Executive Lewis Waddell has fully leased a mixed-use home office and retail building in the popular location to new tenants bridal studio By Kinsman, Steve Domoney Architecture, and fitness centre The Gym.

Three 3-level home offices of 180sqm at 420 Church Street, Richmond were leased for $55,000pa gross each, on a mix of 2 and 3-year initial lease terms with options.

Waddell said that despite uncertainties created by COVID-19, the last 2 remaining home offices were leased at the beginning of the month.

He said tenants were attracted to the recently updated, modern building’s high quality, prized city views and a terrace balcony, and its prime positioning in the heart of the Cremorne and Richmond activity zone, just metres from the Swan Street retail and lifestyle precinct.

“The architecture firm was renting an apartment and an office in Melbourne and is now able to do both due to the layout of these properties. Each has a large ground floor space that can be used as an open-plan office, personal training space or bridal studio, in these cases,” Waddell said.

“While headlines around the Richmond and Cremorne office market are dominated by high- profile companies such as Seek, Tesla, Disney, MYOB, Domain and Carsales, smaller businesses have also rushed to take up boutique and individual offices in the area.”

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.