A 112-year-old retail building in inner Melbourne is expected to sell for about $7 million when it goes under the hammer in May.
Owned by Melbourne-based lawyer Peter Vodicka, the two-storey property at 372-376 Glen Huntly Road, Elsternwick, occupies 581 square metres on a corner block.
More than 70 per cent of the income comes from national retailers such as Nandos, Vodafone and F45 Gym. The annual income is about $365,000 excluding GST and outgoings.
Built in 1906, the red brick and sandstone building has three street frontages.
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CBRE’s Rorey James, Sandro Peluso and Mark Wizel are selling this property with Wilson Commercial’s Adam Guest and Nicole Scrofani.
Mr James said the median house price growth in Elsternwick of 60 per cent in the past two years, to about $2,165,000, showed it was “one of Melbourne’s most exclusive suburbs”.
“With an affluent demographic – that we know will see rapid population growth over the next decade – retailer conditions along Glen Huntly Road are set for its strongest years, providing landlords with fantastic rental growth in the near future,” he said.
Mr Peluso predicted that local and Asia-based buyers would show interest in this property, thanks to its triple frontage and location.
“Elsternwick is set for a major population injection which it has never seen before, with the suburb earmarked for several residential development sites and six major infrastructure projects, including a new cultural precinct and the Carre Street Pedestrian Plaza,” he said.
Retail assets in Melbourne have been popular in 2018.
Two suburbs from Elsternwick, a commercial building Beller House at 281A-289 Carlisle Street, in Balaclava, is set to sell for more than $20 million. That property occupies a 2720-square-metre site.
In late March, a Coles supermarket in Clayton fetched $17,115,000 under the hammer on a record yield for supermarkets of 2.57 per cent.
Further from the CBD, vacant blocks in gentrifying suburbs are being chased for their development potential, with a car parking lot in Box Hill selling to a Chinese developer for $8.25 million in mid-March.
The Elsternwick property will be sold at a public auction on May 11.
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