Owner-occupiers continue to fuel competitive tension in campaigns for assets in industrial pockets of Melbourne, with a builder and a mortgage broker pouncing on respective Richmond properties.

Fitzroys’ Mark Talbot and Shane Mills sold the vacant 314sqm freehold at 10-14 Yarra Street under the hammer for $1.888 million - some $188,000 above reserve - on behalf of a local land banker who had held the property for over 16 years.

“The purchaser is considering subdivision of the property, with a view to part occupation and leasing the balance,” Talbot said.

“They’ve been seeking opportunities where they could add value and occupy. The large 19-metre frontage of the site was important to their purchase.”

The sale continues a run of warehouse sales for Fitzroys.

In a deal that has just settled, Talbot and Mills sold the close-by 11 Prince Patrick Street, Richmond for $1.4 million. The 170sqm warehouse is on a 228sqm site.

All of the multiple bidders that competed at the auction for 10-14 Yarra Street and for 11 Prince Patrick Street were owner-occupiers.

“Land tax challenges in city fringe locations mean investors are looking elsewhere, and occupiers have more than made up for that, competing fiercely for well-located opportunities, particularly those with a value-add aspect,” Talbot said.

“Both buyers are relocating from within a one kilometre radius, and the properties are close to the fast-developing Church Street precinct and ultimately in a thriving, well-connected inner-city location.”
Mills said the Richmond and Cremorne area is one of Melbourne’s hottest commercial precincts.