207 Blackburn Road, Mount Waverley
The 428sqm café, gym and office building sold for $3.445 million at a 4.2% yield. Zoned Commercial 1, it is on a 650sqm corner site with 17 parking spaces and is fully leased across 3 tenancies, returning $144,068pa plus outgoings and GST.
53-55 John Street, Pakenham
The 344sqm showroom occupied by a Salvos op-shop sold for $1.82 million at a 4.94% yield. It is on a 376sqm site and has a 5 5 5-year lease returning $90,000pa plus GST with 3% annual increases.
41-43 Kirkwood Crescent, Hampton Park
4 strata units within Kirkwood Plaza of around 100sqm and with long-term leases all sold for sub-$1 million prices. A dental clinic sold for $940,000 at a 4.51% yield, the Kirkwood Plaza Medical Centre sold for $971,000 at 4.37%, a Bottlemart outlet sold for $985,000 at 5.02%, and the MJ café premises sold for $841,000 at 4.76%.
525 High Street, Northcote
The vacant 99sqm building on a 230sqm site sold for $930,000. The vendor was a local family that had owned the property for 20 years.
644 Sydney Road, Brunswick
The 180sqm single-storey shop sold for $888,000 at a 3.8% yield. Bar Texaco has a 5 5 5-year lease returning $33,746pa plus outgoings and GST, with 4% annual increases.
168-170 Acland Street, St Kilda
Veludo leased the 2-level 360sqm building for 5 years to open a new bar/club. It will pay $350/sqm, with the ground floor leased for $700/sqm and the 1st floor for $255/sqm.
13A Rose Street, Armadale
The operator of Malvern café 30 Mill leased the 104sqm building with a 9m frontage on a 5 5 5 5-year term at $35,000pa.
722 Glenferrie Road, Hawthorn
Menswear brand Gazman signed a 3-year lease at $73,000pa gross over the 95sqm shop.
Level 10, 41 Exhibition Street, Melbourne
A local owner occupier bought the 283sqm whole floor for $4.795 million. The tower was developed by the Royal Australian Institute of Architects.
Building 1/630 Mitcham Road, Mitcham
The 209sqm level 1 office space was leased at $74,390pa. It has open plan and partitioned areas and boardroom, and comes with 12 basement car spaces.
1-3 Freight Road, Tullamarine
Jackson Motor Company bought the vacant 1,066sqm office and warehouse for $3 million. Han Group was the vendor.
Unit 6/6 Clayton Road, Clayton
The office and warehouse building occupied by long-standing tenant DMG Mori Australia Pty Ltd sold for $1.86 million, at a 4.8% yield. It returns $90,000pa with annual 3% increases.
1/26 Constance Court, Epping
An owner occupier paid $800,000 for the 378sqm office and warehouse unit within the Connect North Industrial Estate.
87 Elm Park Drive, Hoppers Crossing
A cricket development coach leased the refurbished office and warehouse for 5 years at $112/sqm.
11 Hi-Tech Place, Rowville
Line-marking company Mainliner Pty Ltd leased the 510sqm warehouse for 3 years at $108/sqm.
4 Palomo Drive, Cranbourne West
Brighton Flooring signed a 3-year lease over the 1,276sqm facility at $85/sqm.
156 Australis Drive, Derrimut
A food exporting company leased the 1,100sqm office and warehouse facility on a 3 3-year term at $85,000pa.
6/451 Leakes Road, Truganina
An investor bought the Woodlands Early Learning childcare centre property for $6.25 million at a 6.38% yield. The 805sqm facility is on a 1,969sqm site and is leased on a 15 10 10-year deal returning $398,775pa net plus GST.
Melbourne’s Strip Retail Market Passes 1st Test for 2021
Melbourne’s retail property market has passed its 1st test of 2021, with the $7.55 million auction sale of a generational prime investment on famous Burke Road, Camberwell demonstrating the ongoing attraction of well-located, income-producing assets, as well as the resilience of Melbourne’s shopping strips.
Fitzroys’ David Bourke and Chris James sold 751-753 Burke Road, Camberwell on behalf of a family that had held the asset for 45 years.
The property sold under the hammer in the 1st auction of a primely-located Melbourne retail strip asset for 2021.
The sale price reflected a sharp 4.1% yield. The purchaser is a private investor.
It comprises a dominant 2-level 420sqm freehold with an expansive 12.2m frontage to Burke Road, on a 465sqm Commercial 1-zoned site over two titles offered as a whole. It is situated on a large site with frontage to Commerce Lane providing future value add potential.
“Well-located Melbourne retail and commercial property with strong tenancy profiles and long-term leases have become more highly-sought after during the COVID period, with investors preferring the secure income of bricks and mortar assets in the ultra-low interest rate environment.” Bourke said.
Mountfords Shoes, part of national retailer Munro Footwear Group, has been trading from the property for the entirety of the vendors’ ownership, and has a long 6 5-year lease returning $329,600 per annum plus GST, with annual 3% increases. Munro Footwear Group employs over 2,000 staff nationally and consists of leading brands that, as well as Mountfords, include Mollini, Diana Ferrari, Midas,Williams and Colorado.
“Well-located property in traditionally strong shopping precincts will always be sought after by astute investors, well aware of the limited buying opportunities in these proven pockets,” Bourke said.
“Investors and land bankers recognised the historic nature of this opportunity to acquire a dominant site in the heart of one of Melbourne’s most famous shopping and lifestyle strips.
“This was reflected in the high volume of enquiry, fierce competition between multiple bidders at auction, and the strong result achieved.”
The campaign generated over 120 enquiries from local and international parties.
“We expect more investors will be seeking these types of opportunities in 2021. The depth of enquiry shows there is a large volume of capital out there waiting to be deployed, with pent-up demand resulting from few high-quality, well-located properties offered for sale over the past 12 months,” Bourke said.
The property is centrally located on the main pedestrian crossing linking Burke Road and council car parks, within the highly regarded Camberwell Junction retail and lifestyle precinct, and in proximity to all major supermarkets, banks, and national and local traders.
James said the property is in a highly accessible position that enhances its connection to the expanded catchment that Burke Road and Camberwell Junction serve.
“Melburnians have been reconnecting with their local communities over the past 12 months. Neighbourhood strips have been the place to go for a coffee, catch-up with friends, or to break up the day and go shopping, particularly as working from home becomes more widely accepted,” James said.
“This has reinforced the resilience of Melbourne’s shopping strips and enhanced the investment prospects of well-located assets.”
An abundance of medium and high-density residential and commercial developments have been completed in recent times, including Camberwell Village, Hawthorn Park, Aerial, The Well Residences, Elmington, Solstice and Ebony. James said this has further enhanced the affluent and established inner-east residential catchment.
Mont Albert Office Building Sells After Refurbishment
Larkfield Estate has bought a recently refurbished 3-level Mont Albert office building for $27.85 million, with new leases to Laing O’Rourke and a Telstra Business Centre.
The vendors of the 3,720sqm building at 3-7 Hamilton Street are Ballarat-based Troon Group, in partnership with developer and lender MaxCap.
Laing O’Rourke occupies around 2,600sqm on a 3-year term and the Telstra Business Centre has the remaining 1,120sqm for 5 years.
Troon Group recently sold the Ballarat Lifestyle Centre to a Melbourne-based private investor for $12.39 million, at a yield of 5.98%. The 3,765sqm centre is on an 11,710sqm site and is fully leased to 5 tenants that include The Salvation Army, Autobarn, RB Sellars and Beds R Us.
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.