Weekly Wrap

Fitzroys Weekly Wrap - 2nd April 2021

Posted on 02nd April 2021

143A Whitehorse Road, Blackburn
An owner occupier bought the vacant 371sqm showroom for $1.54 million. Zoned Commercial 1, it is on a 392sqm site within the “Golden Mile” precinct and has an 11m frontage.

258 Centre Road, Bentleigh

The 2-level 234sqm building sold for $1.31 million at a 4.12% yield. It is leased to Australian Survey Research Group Pty ltd for 3 years until April 2022, returning $54,100 plus outgoings and GST. It has 4 on-site parking spaces.

1, 339 Swanston Street, Melbourne

The operators of the Little Temperance Café, Otherside and Thera leased the 145sqm former Nando’s space, including a 50sqm basement, for 10 years plus options at a rate from $2,300 to $2,500/sqm.

759 Glenferrie Road, Hawthorn

Jopombc Tattoo signed a 5-year lease with an option for the 150sqm 2-storey shop and dwelling, at $58,000pa plus outgoings and GST.

612-616 Camberwell Road, Camberwell
A private investor bought the purpose-built Ambulance Victoria facility for $3.6 million, at a 3.8% yield. The modern 275sqm single-storey facility is on a 597sqm site zoned Commercial 1, with 7 on-site parking spaces and a 16.5m frontage to Camberwell Road and a rear lane.

137-139 Glen Eira Road, St Kilda East

A charity organisation leased the whole 2-level building for 5 years at $45,000pa net.

30-32 Deans Court, Dandenong South
The 2,350sqm building sold for $3.2 million on a 5.3% yield. It returns $170,000pa net on a 4-year lease.

102-104 Merola Way, Campbellfield

An owner occupier bought the vacant 1,140sqm office and warehouse for $1.525 million.

7 Salvator Drive, Campbellfield

The 888sqm building sold to an owner occupier for $1.32 million

2 McLellan Drive, Kensington

An owner occupier bought the 300sqm office and warehouse for $940,000. It is located on the former Simplot site, where Four’N Twenty pies were once manufactured, which was redeveloped by Banco into a gated industrial site.

36 Naxos Way, Keysborough

Greens Global Aus leased the new 1,567sqm facility on a 2,243sqm site for 5 years, at $165,000pa net

Factory 15, 95 White Street, Mordialloc

A removalist business leased the 334sqm warehouse for 3 years at $85/sqm.

243-249 St Georges Road, Northcote
Zoned Commercial 1, the 921sqm site sold for $4 million with a permit for a 5-level apartment development with 2 ground floor commercial spaces. The sale price reflected a rate of more than $150,000/unit.

Jam Factory Plans Redrawn
Newmark Capital has struck a deal with developer Tim Gurner and his equity partner Qualitas to jointly redevelop the Jam Factory on Chapel Street, South Yarra.

The new $1.4 billion plans for the 19,250sqm site include more than 20,000sqm of retail space, 20,000sqm of offices, a hospitality and entertainment precinct, and a tower with a 170-room hotel and between 550 and 650 apartments.

The iconic cinema will be expanded, while a new rooftop bar and conference and event spaces will be introduced.

Gurner and Qualitas will put in around $75 million of equity into the project and acquire part-ownership of the Jam Factory. They will then jointly undertake the 181,000sqm development with Newmark.

Newmark acquired the 20,000sqm Jam Factory complex at 500 Chapel Street from Challenger for around $165 million in 2015. It obtained approval from the City of Stonnington in 2018 for a 100,000sqm development on the site that included 50,000sqm of office space across 4 towers, and an overhaul of the retail, cinema and hospitality offering.

Last year, Newmark bought the David Jones menswear store at 299 Bourke Street for $121 million. It plans to refurbish the retail and office levels of the 6-storey building when David Jones moves out in the coming years.

Touchdown in Brunswick Street for New US-themed Sports Bar
Melbourne’s famous inner-north lifestyle strip Brunswick Street, Fitzroy is set for a new US-themed sports bar as nightlife returns to the city.

Fitzroys’ Lewis Waddell negotiated the lease of 272 Brunswick Street, the former long-term home of popular venue the Kodiak Club, at $100,000pa plus GST.

The new operator has been involved with CBD venue The Coopers Inn, and leased the entire 300sqm 3-level building plus basement for their venture.

Waddell said they were wanting to bring the former Kodiak Club venue back to life. The Kodiak Club itself had an American theme, with bourbon and rye whiskies prominent among its liquor selection, and buffalo wings, burgers, ribs and corn bread featured on the menu.

While the space will undergo some refurbishments, including upgrades to the amenities, the new operator is wanting to honour the heritage of the building and Brunswick Street.

“They identified there is a gap in the market for this type of offering, and the existing fit-out, courtyard, and 3am liquor licence presented a rare opportunity to set up a new venture in one of Melbourne’s most vibrant hospitality, retail and lifestyle precincts,” Waddell said.

More than 60 enquiries were received for the property - almost entirely from hospitality and food and beverage operators - given the history of the site and the high regard held for Brunswick Street, Fitzroy.

The new venue will begin trading in the coming weeks with a takeaway food and coffee offering, before upgrades to the building are finalised and it reopens fully as a bar.

“The takeaway aspect allows for an efficient way to start trading, and introduce and establish themselves within the Brunswick Street scene, while navigating the ongoing COVID environment before it is revived as a heaving bar,” Waddell said.

“This section of Brunswick Street, close to the Johnston Street intersection, is a prime nightlife trading spot, with huge amounts of pedestrian traffic at night. Close by are Naked For Satan, Alimentari, Mario’s, The Provincial Hotel, among many other bars, cafés and eateries in this pocket alone.

“Brunswick Street has built a reputation as one of Melbourne’s most desirable destinations for fashion and hospitality. With more businesses and residents taking up inner-suburban working arrangements, and a large number of medium, high-density and commercial developments already taking place nearby, Brunswick Street is well-placed to benefit from a growing local residential and worker catchment.”

Waddell said leasing enquiry throughout Melbourne’s strips has rebounded strongly since the short February lockdown.

“Businesses are much more willing to commit to deals at larger total rents, as well as undertaking refurbishments as crowds return.”

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.