Shifting fortunes are bringing a flood of CBD properties to market with a raft of long-term and short-term investors calling time on their holdings.
In the west end, a pair of investors who held their properties for more than 40 years are selling 423-425 Elizabeth Street.
Originally part of the old Argus Hotel – neighbouring the Argus Building on the corner of Latrobe Street – the shop is expected to fetch a whopping $15 million.
Records show the vendors paid just $70,000 in 1981 when the strip was filled with motorbike retailers.
The 315 square metre property is on a 188 sq m parcel of land and offered with vacant possession. It was previously leased to dessert bar Hui Lau Shan.
They are also offloading 55 Hardware Lane, which records show the pair bought in 1991. It’s expected to fetch around $5 million.
The three-storey 310 square building is on 108 square metre of land and is leased to tenants including Hairroom Salons. It returns $130,000 a year in rent.
Mr Mufale said it’s the first Hardware Lane to come to market in two years.
The last property sold was No.60, which fetched around $4.8 million – a building rate of $23,905 a sq m and a spiky yield of 2.91 per cent.
But there are more recent acquisitions up for grabs. Chinese-backed Longriver Group is selling the former Peter Stevens Motorcycles showroom at 337-347 Elizabeth Street for which it paid $31.5 million two years ago.
It comes with a permit for 10 levels and is expected to sell for up to $38 million through Colliers. Longriver is cleaning up. Last month it sold the former Wantirna Caravan Park to Stockland for $60.9 million.
And after six years of ownership, philanthropist Helen Sykes is selling the eight-level 175 Flinders Lane which is expected to fetch around $20 million.
Home to Chris Lucas’ Kisume restaurant, it last traded for $9.8 million in 2015. Colliers and Killen Thomas’ John Camilleri are handling inquiries.
It’s up the hill from Tomasseti House at 277-279 Flinders Lane which was acquired last week by Sydney hospitality maestro Justin Hemmes for $43 million.
Also held in the same family for decades is the former ANZ bank branch at 2-4 Kingsway in Glen Waverley.
The 320 sq m shop with office space comes with approved development plans for a six-storey building.
It sits on a 473 sq m parcel of land opposite the Glen shopping centre which is now topped with the $450 million Sky Garden apartments.
It returns around $250,000 a year in rent but is expected to fetch around $10 million.
JLL agents Josh Rutman, Tim Carr, MingXuan and Ray White Commercial’s Ryan Trickey, Ben Ainsworth and Glenn Ye are selling the property.
A vacancy rate of 14.96 per cent on Burke Road Camberwell has not deterred investors in the blue-chip well-heeled strip.
Seven bidders competed for 580 Burke Road at last week’s auction, pushing the price $1 million beyond its reserve to $6.78 million – a yield of 3.8 per cent.
Fitzroys agents Chris Kombi and Chris James sold the 344 sq m shop, leased to Witchery, on a yield of 3.8 per cent. The owners had held the property since 1977.
Mr Kombi said there could have been more bidders but some people missed out.
“Bidding opened at $5.5 million. We hit the reserve in the first minutes of the auction,” he said.
The shop is on a 361 sq m site with street frontages to Burke Road and Market Place.
“Most of the vacancy is higher up the hill. This part of the strip is much tighter,” he said.
Earlier this year, Fitzroys sold 751-753 Burke Road, for $7.55 million on a 4.1 per cent yield.
The next test for the market is coming up on May 28 when another deceased estate goes to auction at 634 Burke Road.
Leased to Mecca Cosmetica and Spring Massage Therapy, this shop also has frontage to both Burke Road and Market Place. It returns a total $230,809 a year in rent.
The shop is on a 249 sq m land holding and should fetch around $5 million. Records show it was bought for just $135,000 in 1975.
Fresh from selling South Yarra Square to Tony and Steven Sass’ Oreana Property Group, Charles Emmett is preparing to auction its neighbour at 169-175 Toorak Road.
The four-shop faux Tudor block, just east of South Yarra railway station, is expected to sell for around $10 million.
Oreana reportedly paid around $35 million for 177 Toorak Road. It has plans to turn the 1980s-era post-modern shopping and office centre into a hotel and spa. It’s on 1853 sq m.
The faux Tudor shops, which go to auction on May 28, are on a 613 sq m footprint. The four tenancies return $320,553 in rent.
CostaFox has launched a second strata office project in Cremorne across the road from the one it sold for $50 million in 2019.
The developer – a joint venture between Michael Fox and Geelong’s Costa family – is keeping five levels of the proposed new building at 22 Gordon Street and selling 14 strata offices on levels six to eight.
The Everlane is in the centre of the commercially gentrified Cremorne technology precinct.
CostaFox pre-sold its first strata project to investment house Bayley Stuart in 2019 for $50 million – before it was even built.
Mr Fox said “We’re talking to high net worth individuals who don’t necessarily want to go back into the city. They want to own and control their own space.”
Development director, Geno Hubay said “There are currently very limited opportunities for anyone to purchase a premium office of their own in Cremorne or on the city fringe.”
The building’s architecture is by Fieldwork with interiors by Mim Design. It will have end of trip facilities and a rooftop terrace with views to the city.
Colliers agents Ben Baines, Ted Dwyer, Raphael Favas and Chris Ling are marketing the suites which range from 68 sq m to whole floors of 613 sq m.
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