An influx of investors seeking strata assets has seen another strong sales result for a Toorak retail investment.
Fitzroys’ Lewis Waddell and Max Uzunovski sold Shop 8, 521 Toorak Road, Toorak on behalf of a local family, following a deadline private sale campaign that generated 4 offers from highly qualified buyers.
The sale price of just under $1 million reflected a tight net yield for a strata-titled asset within a shopping arcade of 5.9%.
A first-time commercial property investor purchased the 87sqm open-plan property, which was offered with a secure 5+5-year lease to established tenant Hair By Konstantinos.
Waddell said the buyer was attracted to the secure tenant profile with 4 years remaining on the lease, and the attractive return on an asset in a blue-chip area.
“We’re seeing a large influx of entry-level, first-time and self-managed super fund buyers seeking high-yielding strata-titled assets.
“That’s providing a lot depth to enquiry for our campaigns and intensifying the competitive tension between buyers, which in this case resulted in an unconditional sale right on the deadline.”
Uzunovski noted that the purchaser was also very keen on the strong fundamentals of Toorak, which is seeing a number of premium developments recently completed or under construction that are translating into high population growth and a boost to trade and activity in Toorak Village.
The property is close to the St Germain luxury commercial development, the Toorak Village residences and offices project on the corner of Mathoura Road, and the soon-to-be constructed One Toorak Place development.
Toorak Village also sits within one of the Victorian Government’s new Activity Centre precincts. As a major key tram, train, jobs and services hub, Toorak Village has been earmarked by the Victorian Government for intensive development of residential and mixed-use buildings of up to 12 levels on and around the strip over the coming decades.
Uzunovski added that there is excellent transport connectivity to Toorak Village, via the 58 tram operating along Toorak Road, and Toorak Railway Station being within walking distance, providing quick access to Melbourne’s CBD and the surrounding suburbs.
The sale is yet another by Fitzroys along Toorak Road.
Recent sales by the agency have included the 416 Toorak Road property for $2.7 million, on a strong land rate of $13,500/sqm and indicative yield of 2.5%; that followed the sale of the strata-titled 525 Toorak Road for $1.070 million, on a very high building rate of around $15,000/sqm; and most recently 456-460 Toorak Road for $4.55 million. That sale price reflected a new record low net yield for Toorak Village of just 1.5%.