A new record has been set for an eastern Melbourne retail strip.
Fitzroys’ Chris Kombi and Ben Liu sold 14-16 Brice Avenue, Mooroolbark under the hammer for $3.34 million, on a tight 4.85% yield.
Stonebridge Property Group’s Nic Hage, Ian Lam and Rorey James were the conjunctional agents, with the transaction managed by Advise Transact.
The double-fronted 402sqm building was offered brand-new medical centre fit-out, and is on a 484sqm landholding with 12.6m of street frontage facing busy Mooroolbark train station and within the core Mooroolbark activity centre.
It has a new 10-year net lease with options through to 2050 to an experienced General Practice medical group, and there is a strategic sub-lease to publicly listed pathology provider Australian Clinical Labs.
“Fierce bidding followed a strong national marketing campaign that generated more than 100 enquiries from across Australia, delivering an outstanding price that was well above reserve, and which set a new record for Brice Avenue,” Kombi said.
“Three parties fought it out at the auction, with the successful buyer and the underbidder bot being investors from NSW.”
“Investors are seeking security at a time of volatility in the residential and share markets, and we continue to see assets in quality locations with long leases to health and wellness operators attract a range of buyers.
“In this case the purchaser was drawn to the property’s 10-year lease and essential services use, its brand-new fit-out, its location in a catchment with an ageing demographic that has a growing reliance on medical care, and positioning in a tightly held precinct and opposite a busy train station.”
Liu said the property is amongst national retailers, including a Coles supermarket, and a number of complementary healthcare and pharmacy businesses.
“Brice Avenue is the key component of Mooroolbark’s popular shopping precinct, which services an established and loyal catchment,” he said.
The sale price reflected a building rate of $8,308 per sqm and land rate of $6,901 per sqm.