Weekly Wrap

Fitzroys Weekly Wrap - 2nd June 2021

Posted on 02nd July 2021

124 Lygon Street, Carlton
An investor bought the 3-level, 215sqm retail and residential building for $1.675 million, at a 4.4% yield. It has 5+5+5-year lease to longstanding restaurant tenant, Thai City, returning $77,875pa net plus GST.

28 & 30 Johnston Street, Fitzroy

Separate buyers – an investor and owner occupier – bought the respective freeholds for a combined $2.11 million, at an average building rate of $10,550/sqm. Number 30 is leased to Burger Road and sold on a net yield of 3.3% while number 28 was sold with vacant possession.

223 High Street, Prahran

The 275sqm building occupied by Vietnamese restaurant Firebird sold for $4.01 million. Firebird is operated by Commune Group, who also run popular eateries Hanoi Hannah and Tokyo Tina, and has a lease that, including options, runs to 2034 and returns $152,082pa plus GST.

138-142 Hawthorn Road, Caulfield North

The 200sqm 2-level building with a ground floor chemist and 2-bedroom apartment above sold for $3.28 million. Zoned Commercial 1, it is on a 468sqm site over 2 titles and returns a combined $101,119pa plus GST.

Shop 13/42 New Quay Promenade, Docklands

The vacant 323sqm fully-fitted restaurant space sold for $2.2 million. It is on a ground floor corner position and is licensed to hold 120 patrons indoors and 60 outdoors.

151 Chapel Street & 16 Mechanics Lane, Windsor

The 175sqm shop and office building sold for $2.005 million. Japanese restaurant Ganbare Kaz Kaiten Sushi has a 5-year lease on the ground floor and Ivy Constructions has a 2-year lease to September 2022 over the 1st floor office.

28 Riddell Parade, Elsternwick

A pair of properties within CitiPlans’ Elsternwick Place development sold separately. Shop 1 sold for $1.652 million at a 4.8% yield, leased to Hunter & Co and returning $78,785pa, while Shop 2 sold for $1.837 million on a yield of 6% with a lease to Penta bringing $112,550pa.

3/220 Epping Road, Wollert

The 80sqm space sold for $790,000 with a 7-year lease to March 2025 plus a 7-year option, currently returning $40,045pa plus GST.

203 Greville Street, Prahran

Artist Mel LaBozzetta leased the ground floor space as a gallery and workspace for 3 years at $22,000pa.

96 Thistlethwaite Street, South Melbourne
The home/office building sold for $2.18 million. It is on a 164sqm site and has a ground floor office and 3-bedroom apartment above.

8 Carlton Street, Prahran

Sleeping Duck Pty Ltd signed a 3-year lease, at $450/sqm net, over the entire 1,010sqm building.

2/6 Pryor Street, Eltham

Accounting firm Torquing Numbers Pty Ltd leased the 1st floor office for 4 years at $44,000pa.

22/25-37 Huntingdale Road, Burwood
An owner occupier bought the vacant 198sqm office and warehouse unit for $720,000.

32 Spalding Avenue, Sunshine North

An owner occupier bought the 330sqm warehouse for $685,000 from its original developer.

19 Oxford Road, Laverton North

Bedding supplier Sleep Systems leased the 10,903sqm distribution centre for 4.5 years at around $87 to $90/sqm. The owner is 151 Property.

1-23 Letcon Drive, Dandenong South

Third party logistics provider NDST signed a 5+5-year lease over the 9,979sqm facility at $80/sqm.

200-204 Princes Highway, Pakenham
A local developer bought the 2,922sqm Mormon Church site for around $3.6 million with plans to develop a mixed-use retail complex anchored by a childcare centre. The Church of Jesus Christ of Latter Day Saints has 2 years left on its lease.

2-6 Centreway, Mordialloc
The home of bar and restaurant The Bay Mordi sold for $7.2 million, with a 10-year lease to 2029 plus options returning $420,069pa.

2A-4 Roseberry Grove, Glen Huntly

An investor bought the Evolve Education-leased childcare centre for $6.905 million. The 1,300sqm site has a 10-year lease until 2029 with further options to 2049 with a licence for 81 places, and returns $303,955pa net plus GST.

Development Sites In SeasonA prized St Kilda island site spanning 1,370sqm on busy St Kilda Road has been snapped up for $7.9 million as the suburb continues along the regeneration path.

Fitzroys’ Mark Talbot and Shawn Luo, together with Gross Waddell ICR, sold the high-profile property at 344-360 St Kilda Road on behalf of an owner who accumulated the site over multiple transactions.

Talbot said the purchaser, a local developer, intends to utilise the site’s existing permit for a premium 6-storey mixed-use development, with a net saleable area of 4,743sqm and residences designed for the growing downsizer and owner occupier segments of the market.

The site currently comprises a high-profile single-level showroom and office generating significant holding income from tenants Tradelink and SMR Advertising, and traded on a sharp 2.4% yield.

“The market recognised this site as the largest development opportunity in the suburb for some time, with nearly 200 enquiries received from enthusiastic parties,” Talbot said.

The site is ideally positioned close to hospitality and lifestyle precincts including St Kilda beach, Fitzroy and Acland Streets, Albert Park, Carlisle Street, and Chapel Street.

“The huge enquiry and a result that exceeded expectations reflects confidence in the inner bayside market,” Talbot said.

“St Kilda is undergoing a path of regeneration and a experiencing somewhat of a demographic shift. There’s a host of residential, retail and commercial projects that promise to bring a new vibrancy to a famous Melbourne location.” House prices in St Kilda West have been rising, and Gurner’s sold-out, ultra-luxe Saint Moritz apartment project is under construction on the former Novotel site. Meanwhile, the $30 million Victorian Pride Centre is set to open on nearby Fitzroy Street, which will also welcome boutique hotels, again by Gurner on the former Cushion Lounge site, and Erdigroup’s QT on the Rydges site. The Prince of Wales Hotel is currently being refurbished and The Esplanade has just reopened.

It is also where 7-15 Fitzroy Street has just sold for around $18 million, to a buyer who intends to hold the property as-is for the time being. Owned by the Warshauer family for several decades, the property includes a block of 10 Art Deco flats and the St LuJa cocktail bar. Combined, the 1,335sqm site has 5 shops 14 apartments that return $659,400pa.

In neighbouring Balaclava, a row of warehouses at 6-10 William Street on a 1,158sqm site sold for $5.35 million to buyer planning a mixed-use building, while an offshore developer paid $12.2 million for the 2,295sqm site at 7-9 Halifax Street, Brighton, which has a permit for 16 apartments.

On the other side of the city, a local private developer bought the 7,425sqm 30-40 Flockhart Street property in Abbotsford for around $14 million. The site backs onto the Yarra River and currently has a 2-level office building that was previously occupied by vitamins company Swisse and now has a number of upcoming vacancies.

Fitzroys’ Ervin Niyaz and Chris Kombi have also just sold a Commercial 1-zoned 439sqm triple-fronted corner site at 700 High Street, Thornbury to a local developer with preliminary plans to build a mixed-use development with apartments and ground-floor retail in the popular hospitality and lifestyle hub.

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.