A commanding freehold with a secure lease to the Commonwealth Bank of Australia, in the prime of one of Melbourne’s best-performing shopping strips presents investors and land bankers with one of the most attractive propositions of 2020.
Price expectations are in excess of $4.5 million.
The dual-fronted property comprises a 350sqm two-storey brick building, leased to the Commonwealth Bank on a 7 year lease plus options over the 230sqm ground-floor retail space. The CBA moved from within the strip three years ago to the property, combining the two existing shops in the building and completely renovating the premises to suit its modern open-plan layout.
A three-bedroom residence above offers a second income stream. Total return is $205,000 per annum plus GST on a fully-leased basis.
Zoned Commercial 1, the land-rich property encompasses a large 755sqm site that offers significant scope for future redevelopment and value-add potential. It boasts a prominent street frontage of 10.4 metres to Upper Heidelberg Road, along with rear frontage to a right of way and Ivanhoe Plaza car park.
The historic campaign represents the first time the property has been offered for sale in more than 50 years.
“This is a genuine generational opportunity, with properties in this section of Upper Heidelberg Road rarely offered to the market,” Kombi said.
“Interest is expected from national and international investors and astute land-bankers looking to acquire prime sites in Melbourne’s famous shopping strips.”
“Melbourne commercial properties remain a compelling investment proposition. Interest rates are at an historic low and the share market continues to be volatile. This is an ideal opportunity for investors to acquire an income-producing asset with a secure lease to a blue-chip tenant, primely located within an established and affluent catchments.”
James said more people working from home and shopping locally is a trend that is likely to persist in the long-term.
“People have been reconnecting with their local communities. At the centre of those are Melbourne’s shopping strips,” he said.
“Upper Heidelberg Road, Ivanhoe is considered one of Melbourne's safest retail precincts for commercial property investors, with an excellent track record of very low vacancy rates.”
Fitzroys’ Walk the Strip report series has consistently recorded Upper Heidelberg Road among the tightest vacancy rates of Melbourne’s shopping strips over recent years.
Situated adjacent to a busy pedestrian crossing, the property is surrounded by national tenants and Ivanhoe Plaza, anchored by Woolworths and Liquorland, with constant pedestrian traffic from a prized established and affluent demographic.
Ivanhoe Railway Station is just 300 metres from the property, while regular bus services operate along Upper Heidelberg Road. Medium density residential projects have added to the residential catchment and strong local demographics, further benefiting retailers.
Fitzroys sold the Burke Road, Camberwell home of the Commonwealth Bank earlier this year for $12.06 million, demonstrating the enduring attraction of well-located, securely-leased assets in Melbourne’s shopping strips.