Two Chapel Street, South Yarra freeholds have been sold prior to auction after the sales campaign generated a knockout offer amid a regeneration phase for the famous strip.
Fitzroys’ Chris James and Lewis Waddell sold 467 & 469 Chapel Street, South Yarra on behalf of private development and investment group Sterling Global.
The properties were sold together for $3.2 million, reflecting a high land rate of circa $10,000 per sqm.
Number 467 sold with vacant possession, and number 469 sold on a tight yield of 4.4%, with a lease to Portuguese jewellery and homewares retailer and café Gold Over Blue.
“We received broad interest from the market, including from occupiers, investors, family offices and developers. A local buyer purchased the properties to hold as a long-term investment,” James said.
The properties are located just across from the $3.75 billion Jam Factory redevelopment, which is set to reshape famous Chapel Street, South Yarra via the delivery of new commercial, retail and hospitality space, 886 apartments, two hotels and a new cinema complex.
“The buyer is taking a long-term view as the suburb moves through the next phase of a generational development boom, with the sizeable increase in local residents, office workers, shoppers and tourists to the immediate area expected to provide a huge boost activity and trade on the strip.
Surrounding projects in the pipeline also include Greystar’s build-to-rent project in the Forest Hill precinct, Oreana Group’s South Yarra Square redevelopment, and V-Leader’s retail and office project on the former Hotel Claremont site.
“The buyer was also attracted to the underlying land value of the properties and the potential to combine the sites in the future,” James said.
They are in a high foot traffic position near an array of renowned national and independent traders including Rustica, Declic, Scanlan Theodore, Kookai, D-Spa, Decjuba, M.J. Bale, Peter Alexander and more.
Waddell said, “The confidence of the purchaser to make a knockout offer before the auction shows more buoyancy in the market as rate reductions have been announced.
“We continue to see buyers compete strongly for well-located, highly accessible Melbourne shopping strip assets that offer excellent investment and trade prospects.”
Sterling Global, meanwhile, is now marketing its major lifestyle development at 623 Collins Street in the Melbourne CBD, 623 Collins State Bank House.