Heritage sells in St Kilda. A boutique 1870s building with six apartments in a coveted “Poet’s Corner” location at 2 Mozart Street was snapped up at auction for $4,755,000. CBRE’s Julian White, who negotiated the deal with Josh Rutman and Chao Zhang, said the result was evidence of strengthening interest in Melbourne’s luxury apartment market.
Three strata shops at 769 Glenferrie Road have sold on an average yield of 4.25 per cent with a combined value of $4.11 million, Gorman Commercial’s Stephen Gorman and Stephen Speck said. “In a time when we are seeing stand-alone retail in the same strip sell on yields less than 3 per cent, smarter buyers are acknowledging the fact that retail tenants no longer have a use for first-floor dwellings and offices,” Mr Gorman said.
A Chinese family has snapped up a Balwyn shop for $6.18 million. The 701 sq m property at 313-315 Whitehorse Road sold with existing leases to established bedding retailer Back to Sleep and creative agency Web Silk on a weighted average lease expiry of four years, returning combined annual income of $376,000 net. CBRE’s Josh Rutman, Rorey James, Mark Wizel and Benson Zhou negotiated the sale.
Meanwhile, three adjoining shops at 5, 7 & 9 Ferguson Street in Williamstown sold for $4,225,000 on a land rate of $11,266 per sq m and a tight 3.4 per cent yield. The shops sold with three leases to established Williamstown tenants, returning a combined $147,645 per annum plus outgoings and GST, Fitzroys’ James Gregson and Michael Ryan said.
Teska Carson sold 11-13 Regent Street, Prahran. Photo: Supplied
An ordinary looking brick building sold for what may be the lowest yield for an inner suburban industrial property this year – 1.6 per cent. The 11-13 Regent Street factory was nabbed by a developer at a heated auction for $2 million, about $550,000 above reserve at a land rate of $9000 a sq m, said Teska Carson’s George Takis and Barry Novy.
Developers looking at building small office warehouses were interested in 8-10 Monomeeth Drive which sold for $2,821,289. Gorman Commercial’s Stephen Gorman said industrial sites, like the 5281 sq m block that sold, have “brought out seasoned eastern suburban developers who on many cases haven’t been in the market for nearly 10 years”.
A 1303 sq m office warehouse at 5/35 Taunton Drive sold at auction for $2 million, $450,000 over reserve. Steven Salopek from Crabtrees Real Estate said the strong price was the result of a “severe shortage of stock within the suburban south-eastern industrial market.” In another deal, four factories that make up 69 Renver Road in Clayton sold for $925,000 with current passing net rent of $53,910 plus GST, he said.
A commercial in-fill site with redevelopment potential has sold for $6.25 million. The 810 sq m site at 50 Montclair Avenue sold prior to auction to a local developer, Ray White Commercial Glen Waverley’s Ryan Trickey and Ben Ainsworth said. Mr Trickey said the property had been sold at auction last year for a then record price for the precinct of $5.5 million but the buyer failed to settle.
A vacant development site at 98-100 Truganini Road sold at auction for $3.56 million, CBRE’s Ed Wright said.The mortgagee auction saw six bidders vie for the land, which was eventually bought by a Chinese group, he said.
Small shops continue to favour investors. Andrew Prowse from Gross Waddell has sold lots 1 & 2, 3-5 Union Street for $630,000. The shops had a gross lettable area of 136 sq m just off Sydney Road near Jewell train station.
A Melbourne-based investor has paid $820,000 for a prime office suite at 12-14 Cato Street in a deal brokered by Teska Carson’s Tom Maule. The 193 sq m office suite with an open-plan layout and six undercover car spaces sold subject to a monthly lease at the healthy building rate of $4315 a sq m.
CBD offices aren’t usually home to some of the world’s best golf courses. Level 2 of 115 Lonsdale Street, however, will be the new home of 24/7 Golf, which will offer a simulated golfing experience in the 130 sq m space at all hours. Fitzroys’ Stephen Land negotiated the five-year deal in the three-storey building at $55,000 per annum plus GST.
MLC has taken a 12-month lease at Regus Serviced Offices for 166 workstations on level 10/555 Lonsdale Street. The workstations are now occupied after Regus was able to offer a turnkey option at short notice, Knight Frank’s Jemma Hutchinson said. Meanwhile, the flight of small firms to Richmond continues with Five Mile Press and Grass Roots Performance solutions set to move to the recently refurbished X building at 534 Church Street. Knight Frank’s James Treloar brokered the deals in conjunction with JLL. Both transactions are understood to be in the mid $400s per sq m gross.
Building materials group MVC will lease a new office-warehouse at 81 Discovery Road. The 997 sq m office and warehouse is in the Innovation Park estate. Savills Australia’s Paul Jones said MVC agreed to a three-year lease at a rental of $85,000 per annum net.
Udon Yasan has secured a second city site at 187 Elizabeth Street. The restaurant will pay $250,000 per annum on a five-year term with 4 per cent increases, Colliers International’s Cam Taranto and Jarrod Herscu said. “It is the biggest deal in this section of Elizabeth Street since 2014, with a rate per sq m of $2940,” Mr Taranto said.
Fitzroys has leased a 1000 sq m warehouse at 63-67 Murphy Street to a national electrical and data component and equipment supplier. Dean Alexander negotiated the three-year deal with a further three-year option at around $140 per sq m.
Halal Takeaway have leased a 50 sq m shop for $56,000 per annum at 5/371-379 King Street. The deal was negotiated by CBRE’s Zelman Ainsworth and Samantha Hunt.
An independent bookshop has leased a two-level retail store in tightly held High Street. Gorman Commercial’s Patrick Saccardo said the strong rental of $470 sq m over both floors at No. 43 shows confidence from specialised retailers looking to secure a footprint in boutique retail strips.
GormanKelly has promoted David Minton and Matt Mariani as associate directors. The firm’s managing director Rob Kelly said Mr Minton helped sell more than $71 million of commercial property last year and Mr Mariani managed a portfolio of more than $300 million.
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