A Prime trophy investment in Ivanhoe’s tightly-held Upper Heidelberg Road has sold under the hammer for $5.225 million, the highest price paid for a retail freehold in the busy shopping strip.
Fitzroys Senior Manager, Chris James and Director, Chris Kombi sold the property at 137-139 Upper Heidelberg Road, which was offered to the market for the first time in 60 years.
The iconic two-storey building of 505 sqm comprises two shops and a first-floor gym on a 263 sqm site, with a wide frontage of around 13.33 metres.
James said the strong enquiry throughout the campaign led to fierce competition between six bidders at auction, and the sale price reflecting an exceptional land rate of $20,000 per sqm and tight 4.1% yield.
“The record result demonstrated the pent-up demand to acquire commercial property in this tightly-held market,” he said.
The ground level retail spaces have new five-year leases to longstanding tenants Romano’s Restaurant and French-style Laurent Bakery, and a five-year deal to first-floor tenant Vision Personal Training.
Zoned Commercial 1, the property is located just metres from the entrance of Ivanhoe Plaza. Kombi said the offering presented a rare opportunity to secure an iconic Ivanhoe property with an excellent tenant profile and significant passing income.
“The property is brilliantly positioned on Upper Heidelberg Road and abutting Ivanhoe Plaza, and is home to key traders that, combined with national tenants including Woolworths and major trading banks along with popular local businesses, give the thriving Upper Heidelberg retail strip a unique village-style quality,” he said.
According to Fitzroys research, Upper Heidelberg Road currently features less than 1% retail vacancy, which Kombi said is a further testament to the strength of the strip.
An owner occupier will be moving their business to Rosebud after acquiring a fully refurbished office building for $1.15 million.
Fitzroys James Lockwood and Chris Kombi sold 2 Seventh Avenue on behalf of a private investor.
The 450 sqm building has a substantial office fit-out and is on a 521 sqm site with significant frontage of 28 metres to Seventh Avenue, centrally located in Rosebud’s commercial activity precinct and with direct access to abundant council car parking.
Lockwood said the property’s Commercial 1 zoning offered versatility for purchasers, with enquiry received from investors and owner occupiers, including surrounding owners.
“The property’s flexibility and positioning between Rosebud Central and Rosebud Plaza, as well as its proximity to major retailers along Point Nepean was a major drawcard, with a number of buyers looking to take advantage of the growth prospects currently seen throughout the Mornington Peninsula region,” he said.
“It is now widely recognised that the growing local population is increasing demand for retail, hospitality and social infrastructure services, underpinning the viability of traders in the future.”