Weekly Wrap

Fitzroys Weekly Wrap - 26th February 2021

Posted on 26th February 2021

000 Retail 05

751-753 Burke Road, Camberwell
A private investor bought the 2-level 420sqm freehold for $7.55 million at a 4.1% yield. Zoned Commercial 1, it is on a 465sqm site with a 12.2m frontage. Mountfords Shoes, part of national retailer Munro Footwear Group, has a 6+5-year lease returning $329,600pa plus GST with annual 3% increases. The vendor was a family that had held the asset for 45 years, and Mountfords has been the tenant for that entire period.

Showroom 9, 256 Bolton Street, Eltham

An investor paid $4.375 million for the 1,157sqm showroom, which is leased to Autobarn on a 10-year term to 2025 with a 10-year option. It returns $247,659pa plus GST.

147-151 Devonshire Road, Sunshine

An interstate service station operator bought the vacant 2,333sqm former fuel station site for $3 million.

535-537 Glenferrie Road, Hawthorn

Vacant adjoining Tudor-style buildings with ground-floor retail and an office/gallery above sold for $1.575 million. The purchaser, an investor/developer, plans to reconfigure and possibly strata-title the property for leasing or sale. The 235sqm building is on a 320sqm site with a 10.4m street frontage.

Shop 2, 532 Main Street, Mordialloc

A skin care clinic leased the 81sqm open-plan space for 5 years at $35,000pa net. It is on the ground floor of a multi-level mixed-use development that is anchored by a 1,500sqm Aldi supermarket.

000 Development 05

370 & 375 Ballarat Road, Batesford
A Melbourne-based developer paid $32 million for the 30ha parcel in Geelong’s west. The land could yield around 500 lots with a value of circa $150 million.

70 Willandra Drive, Epping

Hope Northpoint divested the 5,687sqm site for $2.921 million, 50% higher than what it paid 3 years ago. The site is zoned Comprehensive Development – Schedule 2 and has a 45m frontage to Willandra Drive.

000 Offices 05

Suite 15, 51-55 City Road, Southbank
An owner occupier bought the 204sqm refurbished office suite for $930,000.

Suite 1, 30-32 East Esplanade, St Albans

A local accountant who has been renting in the immediate area bought the 73sqm office for $380,000 as an owner occupier. It includes 2 on-site parking spaces. The vendor was the original developer, and had owned the investment for more than 10 years.

000Industrial 05

16-20 Third Avenue, Sunshine
AUK Logistics bought the 5,073sqm site with a 1,400sqm warehouse for $3.1 million.

22-30 Wallace Avenue, Point Cook

Suri and Co Developments paid $3.3 million for a 3,122sqm site within the Wyndham Gate Business Park.

2/342-350 Springvale Road, Glen Waverley

PSW Pty Ltd leased the recently refurbished 1,414sqm property for 7 years at $150/sqm.

2/6 Palomo Drive, Cranbourne West

Online tool and machine retailer Ausee bought the 560sqm office and warehouse for $1,010,500 for its new home. The factory has 9 allocated parking spaces.

15/49 Corporate Boulevard, Bayswater

An importer and retailer of Turkish leather apparel and homewares leased the 164sqm industrial unit for 3 years at $18,000pa. It will use the space as storage and supply for its 4 retail outlets.

000 Specialised 05

30-32 Grey Street, East Ringwood
An investor paid $8.2 million at a 5.4% yield for the 117-place childcare centre that was recently completed by developer Bridport Property Group. It is on a 1,677sqm site and leased to Kids Club Child Care on a 15+10+10-year deal returning $450,000pa.

4 Watson Road, Mount Martha

The Little Acorns childcare centre property sold for $6.3 million at a 4.86% yield. Little Acorns has a 10+10+10 year lease over the 706sqm facility, on a 1,040sqm site, returning $306,305pa plus outgoings and GST.

000 Talking Points 05

Complete Package Offers COVID-Proof Investment
A mixed-use Richmond building brought to the market presents a uniquely Melbourne COVID-proof investment, offering three inner-city home offices close to one of the most popular and accessible retail and lifestyle strips.

Fitzroys’ David Bourke, Lewis Waddell and Shawn Luo are marketing 420-422 Church Street Richmond on behalf of a private investor. The property spans 4 titles and is to be offered in one line, via Expressions of Interest closing 24 March.

Primely positioned in a coveted Richmond Hill location, just metres from Swan Street and in the heart of the Cremorne and Richmond activity zone, the fully-leased property comprises 3 separate 3-level spacious home offices plus a ground floor commercial showroom.

The modern building offers prized city views, and each home office features external balconies, quality finishes and appliances. There is secure basement parking with direct access off Dickmann Street.

The property is fully leased to 4 tenants on varying lease profiles returning $216,358pa.

Waddell secured multiple leases early in the first nationwide COVID-19 lockdown last year, highlighting the asset’s investment credentials and COVID-conducive nature.

“The property’s home/office nature, lifestyle attributes and position close to one of the city’s most popular and accessible hospitality and retail strips encapsulate so much about what makes a quality Melbourne investment in the current climate,” Waddell said.

“This property is uniquely placed to benefit from shifts in working habits that have embraced working-from-home arrangements and more flexible office hours. There has been a growing preference for inner-Melbourne offices, while accessibility and hospitality and lifestyle attributes are an increasingly high priority for businesses and workers.

“Swan Street’s hospitality offering features high-quality coffee, eatery and takeaway options for local residents and workers.”

While the Richmond and Cremorne office market has typically been dominated by high- profile tech and creative companies such as Seek, Tesla, Disney, MYOB, Domain and Carsales, smaller businesses have also rushed to take up boutique and individual offices in the area.

At 226 Swan Street, Fitzroys’ Mark Talbot and Lewis Waddell are marketing a high-profile freehold that is scheduled to go to auction on Thursday, 4 March at 1pm on-site.

Situated on the doorstep of the recently-announced Cremorne Place Implementation Plan, the 2-level shop and office building is leased to three quality tenants including Spud Bar, Woodenstone Barbers and reigning AFL premiers the Richmond Football Club, returning $142,732 per annum net plus GST.

Ground-floor retail tenants Spud Bar and Woodenstone Barbers have a five-year lease and the 3+3-year lease respectively, while the Tigers have a 4-year lease which will soon become a monthly tenancy.

“Versatile offerings in the heart of Swan Street, Richmond are incredibly rare,” Talbot said.

The site is situated close to the intersection of Swan and Church Streets. Zoned Commercial 1 and with a highly attractive DD 017 Development Overlay, the 203sqm site also offers value-add potential and for a development of up to seven storeys within four years.

Kestelman Nets Next Development Site
Developer and co-chair of the National Basketball League, Larry Kestelman has reportedly bought a Southbank development site for nearly $20 million.

Zoned Capital City 1, the 1,280sqm site at 293-297 City Road currently has a warehouse used by Budget Trucks and is permitted for a 38-level apartment tower. It had been owned by private investors since 2003, when it was purchased for $3.105 million.

Kestelman’s 48-level mixed-use Capitol Grand tower on the corner of Chapel Street and Toorak Road in South Yarra has recently been completed, and last year he sold 35-41 Claremont Street in the nearby Forrest Hill precinct to US developer Greystar for a build-to-rent project.

Late last year, Greystar bought 15-85 Gladstone Street in South Melbourne, close to the 293-297 City Road site, for $65 million for another build-to-rent development.

Former Brighton BP Site Sells to Developer
A former BP service station on the corner of New and Bay Streets in Brighton has sold for around $25 million to Brighton Residential, controlled by Ron Dodge of Point Property Group.

The 4,079sqm site at 316-328 New Street and 71-73 Bay Street is zoned Commercial 1 and is permitted for a 6-level mixed-use project. It had been put together over 8 years by the vendors for a total of around $11.27 million.

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 2021 Fitzroys.