The sale of Unit 2, 603-611 Whitehorse Road, Mitcham has proven yet again that securely tenanted properties are commercial investor magnets, according to agents Gorman Kelly.
Tenanted by the same business for over 20 years with accessibility to major arterial roads and located along the Whitehorse Road “Golden Mile”, the showroom style property sold at auction for $1,617,000 on a 5% yield.
"Offering this investment at an affordable price point in a market where there’s a lack of stock availability ensured strong enquiry," a spokesperson for Gorman Kelly said.
The well attended auction of over 50 participants resulted in a sale price exceeding both the seller’s expectations and the current sales average in this area.
"Investors are keen for secure, good yielding investments and are willing to pay a competitive yield, even for strata titled properties," the spokesman added.
A two-level Camberwell freehold leased to National Australia Bank has been sold before auction for $3.48 million.
Fitzroys agents Chris Kombi and Chris James handled the campaign for 1397 Toorak Road, which has a double-fronted brick building of 551sqm on a 446sqm site with a commanding frontage to Toorak Road of 12 metres.
The Commercial-1 zoned property sold with a four-year lease to NAB with two further two- year terms, with a current passing income of around $141,000 per annum plus all outgoings and GST, reflecting a circa 4% yield.
The sale comes just weeks after Kombi and James sold the Bendigo Bank site at 4 Prospect Hill Road in Camberwell, near Burke Road, for $7.03 million under the hammer on a 4.2% yield.
Kombi said the Toorak Road property’s tenancy profile and strong position were key drivers of demand, as well as the increased level of residential development in the wider area that has underpinned significant improvement in retail activity along this section of Toorak Road.
“This strip centre is a boutique commercial hub which incorporates major trading banks, an IGA Supermarket, Australia Post, various eateries and local traders and is further supported with the excellent car parking facilities directly behind the subject property,” he said.
Four bidders quickly became two as an older style Reservoir warehouse went bid for bid until it was eventually knocked down for $1,120,000.
Offered for the first time in 65 years, the 924sqm property on the high exposure thoroughfare of Edwardes Street, Reservoir proved popular, with Beller Commercial agents Fred Nucara and Glenn Ye eventually achieving the price $200,000 above reserve at an impressive $1473 per sqm.