257 Chapel Street, Prahran
The 2-storey retail and office building on the corner of Chapel Street and Greville Street sold for $5.2 million, at a 3.35% yield. The 632sqm building is on 495sqm of land and returns $230,000pa net from long-term leases, including to Supa Bargains on the ground floor.
269 Glenferrie Road, Malvern
The 208sqm, 2-level corner building sold for $2.65 million at a 3.75% yield. Zoned Commercial 1, it has a 4+4-year lease on the ground floor to Three Lives Arts and a 3+3-year lease on the 1st floor to a gym, both with 3% fixed annual increases and returning a combined $99,400pa net.
50 Market Street, Melbourne
Café operator Mr Gonzo leased the 60sqm fully-fitted lobby on a 5+5-year term at circa $830/sqm net.
Shop 2, 796 Burke Road, Camberwell
A beauty and skin clinic leased the 108sqm space for 3 years at $39,000pa net.
14 Church Street, Hawthorn
The 1,146sqm building sold for nearly $5 million. It is on a 650sqm corner site zoned Commercial 1, and has a short-term lease to Earth Systems returning $186,000pa net plus GST.
G4, 348 Canterbury Road, Surrey Hills
The ground floor suite sold for $1.18 million at a 4.5% yield.
414 Lonsdale Street, Melbourne
With an upcoming lease expiry, an architect bought a whole-floor strata office from another owner occupier, Parker Designs, at $9,000/sqm.
35-37 Lakeside Drive, Broadmeadows
An investor bought the 3,140sqm facility, on a 6,533sqm site, for $6.3 million at a 4.75% yield. It has a new 5-year lease to Civil Ingal, whose parent company is listed on the New York Stock Exchange, returning $300,000pa net.
14 Marshall Court, Altona
Sydney-based food packaging supplier Pinnacle Packaging signed a 5-year lease at $320,000pa net plus outgoings and GST for its 1st distribution facility in Melbourne.
140 Swann Drive, Derrimut
Looking for larger premises, transport services company MR Express signed a 5-year lease at $330,000 plus outgoings and GST for the 10,000sqm site, which has a 3,445sqm office and warehouse building, full B-Double drive-around access, two large loading canopies and a concrete hardstand.
1-14 Whittingham Circuit, Greensborough
Nillumbik Shire Council sold off the 4,773sqm site to a local developer for $4.62 million. Zoned General Residential 1, it has a permit for 14 townhouses with an average internal area of 190sqm, on lots ranging from 266sqm to 493sqm.
Melbourne Resilience on Full Display in Remarkable Neighbourhood Strip Auction Results
The resilience of Victorians and Melbourne’s neighbourhood strips have been on full display in the face of the state’s 4th COVID lockdown.
Fitzroys sold prime retail properties in the famous Church Street, Brighton and Burke Road, Camberwell shopping strips for a combined $12 million-plus over 2 auctions last Thursday and Friday as restrictions again came into effect.
The auction of 634 Burke Road, Camberwell, home to national retailer Mecca Cosmetica, had been scheduled for Friday afternoon, which would become the 1st day of the snap lockdown. Fitzroys made the decision to keep up the momentum of the campaign for the vendors of 46 years and push on with proceedings despite the lockdown, holding the auction online.
Fitzroys Director and auctioneer David Bourke conducted the auction from home with bidders joining via video link from Hong Kong, Queensland, and regional Australia, as well as Melbourne.
“The property sold for $6 million - an incredible $1.4 million above the reserve - and the seamless transaction for all parties saw the electronic exchange of contracts and transfer of funds immediately afterwards,” Bourke said.
On Thursday, despite the shadow cast over Melbourne heading into another lockdown, Fitzroys sold 13 Church Street, Brighton for $6.070 million at an incredibly tight 2.5% yield.
The 1st auction in the COVID era on Melbourne - and arguably Australia’s premier shopping strip - was held in a COVID-safe manner and hotly contested between 9 bidders. Fitzroys Mark Talbot and Tom Fisher managed the campaign on behalf of the vendors of 60 years, who built the property.
“The results are testament to the resilience of Victorians and Melbourne’s neighbourhood strips,” Bourke said.
“Melbourne’s shopping strips have continually demonstrated their resilience over the past year. These results reflect confidence in neighbourhood strips’ enduring presence in the city, and reinforce the integral role they play as the heartbeat of their local communities.”
13 Church Street was offered with a long lease to Oroton Group, which has 49 stores across Australia and in Asia. The new ultra-modern and immaculate open-plan fit-out features remarkable utilisation of window exposure and the property’s wide 7.9m frontage.
“This was a genuine generational chance to secure a retail investment in the absolute prime of a blue-ribbon shopping strip,” Talbot said. Evergreen Church Street, Brighton is perennially the title-holder of the lowest vacancy rates in Melbourne’s shopping strips, according to Fitzroys’ Walk the Strip report series.
“The prime of Church Street, Brighton may be the most secure location in Australia to buy a commercial property asset. This is reflected in the yield being one of the tightest achieved for a Melbourne shopping strip investment in recent years,” Talbot said.
“Bricks and mortar assets with secure leases and which are well-located in Melbourne’s suburban shopping strips have become more highly sought-after during the COVID period and in the ultra-low interest rate environment,” Bourke said.
At 634 Burke Road, the dual-fronted building has active street frontages to Burke Road and Market Place and is leased to 2 longstanding tenants, high-profile national retailer Mecca Cosmetica fronting Burke Road and Spring Massage Therapy at the rear. It is on a generous 249sqm landholding and its frontage to Market Place offers activation to the market car park and Camberwell Central, featuring Woolworths, Kmart, Officeworks, and Aldi.
The sale, at a 3.58% yield, follows Fitzroys’ remarkable $6.788 million auction sale of 580 Burke Road, at a sharp 3.8% yield and $1 million above the reserve. A short distance away is 751-753 Burke Road, home to national retailer Mountfords Shoes on a long-term lease, which Fitzroys sold for $7.55 million at a tight 4.1% yield in this year’s 1st auction of a prime Melbourne shopping strip asset.
“It is especially noteworthy that all of these assets have been leased to discretionary retailers, showing the premium investors place on well-located shopping strip assets with leases to quality tenants,” Bourke said.
Across the trio of Burke Road auction sales, Fitzroys has sold $20.34 million worth of prime retail assets along the famous strip in 3 months.
Bourke sold 634 Burke Road with Fitzroys colleague Chris James.
Fitzroys has also just sold the ANZ Bank building in the heart of prestigious Toorak Village to an offshore investor following a mammoth 230-plus enquiries. The expressions of interest campaign for 438-440 Toorak Road was managed by Chris Kombi, Chris James and Shawn Luo.
ANZ has a secure lease over the dominant 394sqm corner building that returns $329,600 per annum net with fixed 3% annual increases.
Oreana Property Group Adds to Toorak Road Holdings
Local developer Oreana Property has bought a row of 4 adjoining Tudor-style shops on Toorak Road, South Yarra, for $13.15 million, just a few weeks after buying neighbouring South Yarra Square for around $35 million.
The Tudor buildings at 169-175 Toorak Road sit on a 613sqm site next to South Yarra train station, and are fully leased with short-term deals expiring early next year. The vendor was another developer, Pan Oceania Development, which paid $7.88 million for the property in April 2016.
Oreana Property Group plans to transform the South Yarra Square retail and office complex at 177 Toorak Road into a new luxury hotel and wellness centre. The strata-titled property currently comprises a 5-level building on a 1,853sqm site with a piazza fronting Toorak Road, and with retail and food and beverage space on the ground floor and office space above.
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.