'Local institution': The Alderman in Brunswick East set to change hands
The Brunswick East home of The Alderman – described by agents as a local institution and one of Lygon Street’s longest-running bars – could be yours for $1.57 million.
Serving Melbourne’s inner-north hipsters for the past 20 years, the well-established two-storey art deco-styled watering hole at No. 134 is listed for private sale following an auction prior to Easter that saw some interest, but was ultimately passed in.
The property, listed with Tom Maule and Dean Alexander from Gorman Commercial Real Estate, offers buyers what the campaign describes as “an ultra-cool freehold investment situated within Lygon Street’s thriving hospitality and nightlife precinct”.
“There was some interest at the auction but [we’re] not quite there yet,” said Maule.
“We are getting good enquiry and expect it to sell soonish … I think we’ll get there sooner rather than later.”
The campaign initially steered prospective buyers north of $1.45 million, adjusting the price to $1.57 million post-auction.
“The price reflects a 5 per cent-plus return,” he added.
Maule says private investors have shown a healthy level of interest, given that it comes with the taps still pouring, and tenants keen to stay.
“It’s predominantly from private investors, some who are familiar with the area and the tenancy themselves. Some are also doing some further due diligence on the property [and] the tenant, knowing that it is a bit of a haunt – a local icon.”
The venue’s operators have just signed on again, locking in a fresh 5+5+5+5-year lease from July, giving potential income security extending as far as 20 years.
“They’ve got a big, good business, particularly if you go down there any night of the week and see how busy it is,” Maule said.
“It’s just got a good, steady flow of clientele – people wanting to go there and hang out, have a drink and socialise.”
The lease currently delivers $80,000 a year in rent, plus GST and outgoings, with the tenant covering the day-to-day costs.
Set about 3.5 kilometres from the CBD, the “immaculately presented” 199-square-metre building sits on a 157-square-metre land parcel right in the thick of the bustling social precinct between Glenlyon and Brunswick roads, on the same side as Japanese stalwart Kumo Izakaya, and opposite bars Old Palm Liquor, Bahama Gold, and another longtime local, Atticus Finch.
This particular spot is “one of the inner-north’s best hospitality areas with extremely low vacancy rates”, the agents say.
The Alderman’s point of difference is Sicilian food supplied by next-door neighbour Bar Idda, along with beer on tap, and a restrained wine and cocktail list.
Inside, the layout reads like a classic playbook: wood-panelled bar downstairs, a cosy rear room with bench seating and a fireplace, and versatile function spaces upstairs that can host groups from 20 to 70.
There’s also an upstairs timber balcony that peers over the lush courtyard-cum-beer garden – two areas that do the heavy lifting when Melbourne turns on the sun.
The Alderman’s winning formula has attracted a 4.5-star Google rating, with reviews describing it as “an iconic neighbourhood bar” and “a good spot for casual catch-ups” with a “chilled, friendly atmosphere”. It’s also got chops as a top date-night bar and for people-watching along the busy strip with high foot traffic.
“Watching people go on first dates at Bahama Gold across the road. Its like a free slice-of-life film!” one review reads.
There’s also rear laneway access for deliveries – a small but important tick for distant future operators – and two tram lines running straight past the door.
“The Alderman is one of the oldest bars in its area,” its website reads.
The property at 134 Lygon Street, Brunswick East, is offered for private sale.
