Weekly Wrap

FItzroys Weekly Wrap - 5th June 2020

Posted on 05th June 2020

000 Retail 05

439 Keilor Road, Niddrie
A self-managed super fund investor bought the fully refurbished 200sqm 2-level building on a 209sqm site for circa $1.4 million at a 4.25% net yield. Ferguson Plarre Bakehouses has a 6+6-year lease which commenced in 2017.

128-132 Whitehorse Road, Blackburn
The 1,210sqm corner site, previously used as a Midas car service centre, sold for $2.35 million.

1316 Frankston-Flinders Road, Somerville
Offered to the market for the first time, the 300sqm building home to Stockton’s Coolstore on a 1,551sqm site sold for $521,168.

787 Glenferrie Road, Hawthorn
Nelayan Indonesian Restaurant leased the 125sqm space for 5 years at $55,000pa, and is relocating from nearby on Glenferrie Road.

000 Offices 05

4 Cawley Road, Yarraville
An interstate investor bought the 2-level 1,642sqm office building, on a corner site, for $4.577 million at a 5.38% yield.

517-535 Flinders Lane, Melbourne
A 142sqm strata office sold for $1.2 million. Brendan Sullivan bought the building in 2011 and undertook refurbishments, subdividing the building into 41 individual offices.

Level 20, 390 St Kilda Road, Melbourne
IT consultancy Consultel Cloud leased 746sqm for 5 years at $415/sqm net.

Level 2, 313 Burwood Road, Hawthorn
Fuse Recruitment signed a 6-year lease for 300sqm at $147,000pa plus GST. The business is relocating from a smaller office nearby on Burwood Road, preferring to remain in the immediate area.

Suite 4, 668 Burwood Road, Hawthorn
Engineering and surveying firm Fyfe leased the 188sqm ground floor suite at $50,000pa.

000Industrial 05

6 Taylor Street, Yarraville
An owner occupier bought the 212sqm showroom, office and warehouse unit, on a 245sqm site with 2 on-site parking spaces, for around $500,000.

8 Grange Road, Moorabbin
Hops distributor Bintani leased the 4,161sqm site within Goodman Group’s Chifley Business Park at Moorabbin Airport for 7 years. Rents in the estate are around $105 to $110/sqm.

10 Grange Road, Moorabbin
Also within the estate, bicycle accessories supplier Bikecorp leased a brand-new 6,049sqm distribution facility for 7 years.

10 Mayer Place, Truganina
Sidelink Transport signed a 7-year pre-lease for a 10,000sqm purpose-built hardstand site and 200sqm office, now under construction by landlord FR Investments. Rates for the area are around $55/sqm for hardstand and $80 to $90/sqm for warehouses.

7-11 Jessie Street, Cremorne
Mindset Health leased the former music studio for $85,000pa net plus GST.

Unit 2, 100 New Street, Ringwood
A utilities service business looking to consolidate, upgrade and expand signed a 3-year lease for the 715sqm office and warehouse, with a 400sqm yard, at $80,000pa net.

000 Development 05

437-441 Spencer Street, Melbourne
A Melbourne-based investor and developer paid $2.65 million for the 268sqm site with 2 vacant shop and dwellings, and plans for an 88-room boutique hotel. Zoned Mixed Use, the site is on the corner of Dudley Street and has rear access via a laneway.

452-456 La Trobe Terrace, Newtown
Zoned Residential Growth 1, the 940sqm Geelong corner site comprising 2 residential blocks sold for $1.2 million, to a local buyer who will set up a medical practice.

000 Talking Points 05

Wide Interest Expected for Carlton Landmark Dan O’Connell
One of Melbourne’s most recognisable pubs is hitting the market, with interest expected from publicans, hospitality operators, and developers alike for the Carlton home of the iconic Dan O’Connell Hotel.

Fitzroys agents David Bourke and Chris James are marketing 223-227 Canning Street, on a prized 520sqm corner site in Melbourne’s vibrant inner-north, with vacant possession. The Expressions of Interest closes 1 July and interest is expected in excess of $2.5 million.

One of Carlton's oldest local pubs, Dan O’Connell dates to 1884 and was named after the famous Irish political figure and is also affectionately referred to as “The Dan”.

The Gothic building is a nightlife landmark for Melburnians, and a familiar face for the thousands of passing motorists and cyclists each day along Canning Street and Princes Street.

Home to many Irish pub enthusiasts, drinkers and musicians, Dan O’Connell has in recent time become known for its famed St. Patrick’s Day parties with free-flowing Guinness and weekends that spilled out onto the street and the adjacent park, while its regular live music, comedy, poetry and trivia nights with open fire places, pool and live sports on the big screen have earned the hotel a reputation as a genuine local.

The venue has a beer garden and is licensed to operate seven nights a week.

Bourke said interest is anticipated from hotel operators, developers, and buyers

for alternate uses such as childcare, student accommodation, and other boutique uses.

“Pub and hospitality operators are expected to show huge interest in an incredibly rare opportunity to acquire outright one of Melbourne’s oldest pubs, which has a captive audience and is primely positioned in the cultural hub of the inner-north,” he said.

“Vacant, this will also offer a blank canvas for operators to potentially refurbish and reposition the freehold as Melbourne’s hospitality landscape opens up post-COVID, whilst other value-add buyers will be looking to alternate uses and take advantage of the zoning and corner position.”

James said, “The gentrification of the inner-north had seen an influx of young families that would likely draw the attention of childcare centre operators, while the property’s position near the University of Melbourne and the northern precinct of the CBD made the site an ideal candidate for a boutique student accommodation development.”

He said the popular Canning Street bike route from the CBD to the north provides a constant flow of traffic past the door.

“Focus will again shift on demand for student accommodation premises in the future as international borders reopen and well-located sites are consistently in demand. Scape Australia’s recent $2 billion acquisition of Urbanest shows there is still strong confidence in the sector’s prospects,” James said.

Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys. Terms/Privacy © Copyright 2020 Fitzroys.