232-234 Chapel Street & 2-2A Cecil Place, Prahran
Put to the market for the first time in 50 years, the 285sqm corner site sold to an investor for $3.84 million on a passing yield of 2.3%. The new owner will look to make improvements to the Commercial 1-zoned property.
43 Chute Street, Diamond Creek
The vacant 250sqm commercial building in Diamond Creek Village sold for $1.575 million to a future owner-occupier who will refurbish before moving in. The property is on a 289sqm site in an Activity Centre zone.
6 Pryor Street, Eltham
The multi-tenanted 3-level, 747.3sqm building home to café and restaurant Third Chapter sold for $4.95 million at a 5.6% net yield, returning $277,987pa net. The adjoining 597sqm 2-level corner building at 978-980 Main Road, anchored by the Commonwealth Bank, also sold at a yield of between 5.5% and 6% on the net return of $280,372pa.
180-182 Glenferrie Road, Malvern
The 700sqm building, on a 446sqm corner site, sold for $11 million. 6 of the 8 tenancies are occupied, with tenants including Sushi Sushi on a 7-year lease, café Winter Malvern, Here Yoga and optometrists About Sight. The site has a combined 60m frontage and is opposite Coles.
94 Union Street, Surrey Hills
A private investor paid more than $3 million at a 2.6% yield for the 2-level, 287sqm building, home to Little Learners Love Literacy. It is on a 325sqm corner site with ROW access along 2 boundaries and 6 on-site parking spaces.
33 Cook Street, Flinders
10 shops on 11 separate titles sold for more than $6 million. Zoned Commercial 1, they have a combined 650sqm building area on a 2,023sqm site with 23 car parks.
670 Glen Huntly Road, Caulfield South
A Pilates studio leased the 250sqm space on a 5-year deal at $300/sqm.
513 Malvern Road, Toorak
Collins Book Store signed a 3-year deal at $816/sqm for the 98sqm shop.
7-11 Shipley Street, Box Hill
Anglican charity Anglicare sold its 2-level office building to an owner-occupier for $7.85 million. It is on an 800sqm site with potential for a 12-level height development. Anglicare is moving a space on Prospect Street that it will rent.
29 Guildford Lane, Melbourne
An owner-occupier in the recruitment industry bought the 385sqm building on a 107sqm site for $5.705 million in a mortgagee sale. The former warehouse building with a rooftop terrace had been converted into a home but will be again used for commercial purposes.
31 Guildford Lane, Melbourne
Next door, in another mortgagee sale, joint mortgage holder Magnolia Capital bought the 419sqm converted warehouse building for $4.6 million. It had also most recently been used as a 4-bedroom home.
Level 3, 17 Everage Street, Moonee Ponds
A local owner-occupier paid $2.95 million plus GST for the 508sqm office, which includes 14 on-title parking spaces.
Level 1, 103 Lonsdale Street, Melbourne
Digital recruitment specialist Salt Search signed a 3-year lease at $650/sqm for the 212sqm space.
425 Dockland Drive, Docklands
LEAP Legal Software leased the newly fitted suite 165.4sqm suite for 3 years at $510/sqm.
94 Foundation Road, Truganina
The under-construction 3,032sqm building sold for $4.65 million to an owner-occupier wanting to upsize.
65 Paramount Boulevard, Derrimut
TWC Enterprises bought the 2,088sqm drive-through warehouse within Paramount Estate for $3.466 million. Paramount Boulevard Pty Ltd was the vendor.
47-49 Cyber Loop, Dandenong South
An investor bought the warehouse $1.025 million on a yield of 5.1%.
2-6 Norris Street, Coburg North
The 3-level, 125sqm warehouse and office unit sold for $627,000. It is 1 of a complex of 14.
38/22 Dunn Street, Dandenong
An owner occupier in the car sales industry bought the 120sqm unit sight unseen for $343,500.
16 Trade Park Drive, Tullamarine
A local business owner leased the 1,290sqm office and warehouse facility at $170,000pa.
561 & 561a Riversdale Road, Camberwell
Zoned General Residential 1, the 705sqm site on the edge of Camberwell Junction, fronting Riversdale Road and a car park, sold to a local developer for $3.5 million.
Online Auction of Blue-Chip Retail Investment Sets Shepparton Record
Victoria’s commercial property market has again demonstrated its resilience with another huge online auction result during a COVID lockdown, this time setting a record yield for a retail property in the major regional centre of Shepparton.
Fitzroys’ Mark Talbot and Lewis Waddell sold the high-profile home of major bank ANZ in the Shepparton CBD for $3.47 million - a staggering $1.32 million over reserve, and at a remarkable 3.3% yield.
261-267 Wyndham Street, Shepparton was initially slated for an Expressions of Interest campaign, the overwhelming enquiry seen during the campaign - enquiries totalled more than 100 - saw the property then scheduled to go to online auction, held from the home of Fitzroys Director David Bourke with 30 interested parties dialling in.
“This is another sale that the demonstrates the online auction forum works well for all parties. The transparency of the auction process is maintained, while huge results continue to be seen for vendors,” Talbot said.
“The pent-up demand, together with technological and logistical advances seen over the past 18 months alone have made parties much more confident in proceeding with auctions and achieving a strong result. We have yet more evidence that this works.”
Talbot said commercial and retail property sales in Shepparton have typically achieved the 5.5% to 6.5% yield range, however Fitzroys’ effective marketing, large qualified investor database and competitive auction process achieved the new record yield.
The property comprises a substantial 2-level, 587sqm building that underwent a $1.5 million refurbishment in 2019 to now comprise an ultra-modern fit out consistent with ANZ’s latest corporate standards.
ANZ has a secure 5+5+5-year lease returning $115,927pa plus outgoings plus GST. The lease includes annual 3% increases, and a market rent review at option with ratchet clause. Prominently positioned in the heart of Shepparton’s’ thriving CBD hub, the 617sqm site is zoned Activity Centre 1 that allows potential for a range of alternate uses and development outcomes in future.
“This property ticked all the boxes of a secure commercial property investment, with a long- term lease to a quality, ASX-listed tenant generating a reliable income stream, positioned in the heart of commercial centre and in a location primed for sustained growth,” Talbot said.
He added, “We are witnessing a scarcity of metropolitan Melbourne stock levels, with Melbourne-based investors frustrated with current opportunities. Accordingly, there is a large volume of capital that investors are willing to deploy and Melbourne-based buyers are demonstrating a keen appetite for regional property with strong lease covenants, supported further by state government stamp duty benefits, and adding to the competition.”
Waddell said many Melburnians are using the COVID environment as an opportunity for a tree-change, and the popularity of Shepparton1 reflected the growing attraction of highly- accessible major regional centres with strong economic foundations, particularly while flexible work arrangements are in vogue
“Shepparton is the capital of the Goulburn Valley and is surrounded by a large agricultural sector predominantly with the harvesting of fruit, the production of dairy products and livestock sales.
“The influx of new residents has added to its vibrancy, and is supporting the viability of businesses and commercial property investments,” he said.
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.