The Melbourne CBD is set for its next generational retail property auction, with a corner investment occupied by a popular hospitality operator and located in a bustling seven-days-a-week location going under the hammer in June.
Fitzroys’ Lewis Waddell, David Bourke and Ben Liu are marketing 302 Flinders Lane for sale on behalf of a local investor, with the on-site auction set for Thursday, 11 June at 12pm.
Expectations are of $1.6 million-plus.
Located in a high-profile trading position just a few metres from Elizabeth Street, the substantial 164sqm ground floor corner property was recently refurbished with a high-quality fit-out and is being offered with a 7 5-year lease to Chinese restaurant North East China Family, returning $86,387pa net.
The property features a restaurant fit-out with a commercial kitchen and mezzanine private dining areas, and has an extensive corner frontage to Flinders Lane and Staughton Alley.
“This is an ideal set-and-forget Melbourne CBD property investment,” Waddell said.
“It’s offered with a strong tenant covenant - the longstanding, high-performing tenant is busy every day at lunch and dinner, and has a secure 7 5-year lease for a strong rental return.
“Their recent extensive refurbishment demonstrates their commitment to this location and the Melbourne CBD more broadly, and the confidence they have in its long-term trade prospects.”
Fitzroys’ new Walk the CBD report shows vacancies in Melbourne’s CBD have come down over the past 12 months from 6.1% to 4.6% - a long-term, pre-COVID low. Hospitality, food and beverage and entertainment operators were again the driving force of enquiry and take-up, amid growing demand for eateries and dining experiences, and a visitors spending more on their CBD outings.
Flinders Lane vacancies were down to just 3.2%, according to Walk the CBD, while
Elizabeth Street vacancies fell further to 5.3%. Both figures have improved dramatically year-on-year since COVID.
“The property’s in a really vibrant seven-days-a-week CBD location, benefiting from a constant pedestrian flow of visitors, workers, tourists and locals,” Bourke said.
“It’s close to Flinders Street Station and the brand-new Metro Tunnel access point, and is surrounded by a diverse range of eateries including Brunetti, Pidapipo, KFC, McDonald’s, Grill’d, and a huge number more along Elizabeth Street and Flinders Lane.”
Liu said early enquiry has been from local, national and offshore investors that share with the tenant a long-term confidence in the Melbourne CBD, and who are attracted to the strong leading fundamentals of the property, as well as those appreciative of the hugely rare opportunity to get a foothold into this location.
The property is exceptionally well connected, providing seamless access from across the CBD and Melbourne’s suburbs. It is situated within the Free Tram Zone with multiple tram routes operating along nearby Elizabeth and Flinders streets, and is just a short walk from major Flinders Street Stations, and the new Town Hall Metro Station.