Multiple bidders have competed for a multi-tenanted investment in blue-ribbon Brighton, in another sign of the good health of Melbourne’s commercial real estate market.
Fitzroys’ Chris Kombi, Tom Fisher and Ben Liu, in conjunction with Teska Carson’s Michael Taylor and George Takis sold 310-318 New Street, Brighton. The campaign culminated in another good auction crowd witness fierce competition between four investors.
The high $2.991 million sale price reflected a tight blended retail and office yield of 4.74%.
Kombi said a local land banking investor purchased the property, attracted to its fully leased nature, large land area, and exposure from the Bay Street and Barkly Street intersection.
“Although this is more of a destination location and not part of Brighton’s two main strips of Church Street and Bay Street, the price point associated with the size of the building and land attracted the more astute investors,” he said.
The property comprises a 505sqm fully-leased building with four tenancies, on a 493sqm Commercial 1-zoned landholding with a total 66.2m frontage and on-site parking for six vehicles.
“Well-leased assets in high-performing suburbs continue to be in high demand from investors seeking stability and long-term growth,” Kombi added.
“We’re seeing a market in good health currently. Multiple bidders are competing at our auctions and we continue to see strong results for quality assets.”
Fisher said Brighton is home to an affluent and established catchment that is home to one of Melbourne’s highest median home values, and is in constantly high demand commercial tenants.
“The market recognised the rarity of the opportunity to gain a foothold in one of Melbourne’s most sought-after suburbs. Our campaign generated interest from local investors, and buyers from across Melbourne and Australia, as well as offshore.”