Kew’s popular High Street commercial precinct it witnessing a generational change, with the sale of a second key site in a matter of months set to further activate new space along the strip.
Fitzroys’ Chris James and David Bourke have just sold 171-173 High Street for $4.175 million under the hammer, on behalf of private vendors that had owned the site for over 50 years.
Owner occupiers, and local and offshore investors competed at auction, with a local investor winning out. The sale price reflected a 3.9% yield and land rate of around $14,752 per sqm.
Six months ago, James and Bourke sold a Commercial 1-zoned 526 sqm concrete yard at nearby 226-232 High Street for $4.5 million to a local developer in an off-market deal.
The 283 sqm site at 171-173 High Street comprises a double-storey 332 sqm building with two ground-floor retail spaces tenanted by ASX-listed Flight Centre and Onyx homewares shop, and a first-floor residence above. It returns $164,000 per annum plus outgoings from multiple income streams.
James said the property is in the prime section of the High Street, Kew commercial precinct, at the junction of Cotham Road, and with an ASX-listed tenant tenants attracted more than 100 enquiries throughout the campaign.
Bourke said the purchaser jumped at the primely positioned value-add opportunity in one of Melbourne’s most prestigious suburbs.
“The property backs onto Athaneum Place, the brick lane connecting Brougham and Walpole streets, which the City of Boroondara has been revitalising to enhance the amenity of the adjacent Kew Junction Shopping Centre with a contemporary and vibrant public space,” he said.
“The new owner, a local investor, will look to activate the area at the rear of the property with a retail offering fronting the improved Athaneum Place.”
James said the purchaser of 226-232 High Street had completed a number of successful developments across Melbourne and is looking to utilise the site for a mixed-use project.
“The ongoing introduction of medium and high-density residential developments and a growing office population in Melbourne’s inner eastern suburbs of Camberwell, Hawthorn and Kew have stimulated the retail precincts throughout the region, including Kew Junction, Glenferrie Road and Camberwell Junction,” he said.
More than 2,000 apartments are currently in the pipeline throughour Melbourne’s inner- east.
Local Brunswick institution Tabet’s Bakery has changed hands for $1.5 million after huge enquiry from investors hungry to gain a presence into the inner-north hospitality and lifestyle location.
Fitzroys agents James Lockwood and Ervin Niyaz sold the property on behalf of a Melbourne-based private owner, following a campaign that attracted more than 130 enquiries from investors.
The two-storey freehold in Sydney Road’s retail core has a five-year lease over the ground- floor to Tabet’s, with a vacant first floor apartment.
Tabet’s is renowned for its Lebanese pizzas, popular fare in a precinct has owes much of its character to the influence of a number of Middle Eastern cultures.
Zoned Commercial 1, it is on a 180 sqm site with on-site undercover car parking with rear access of Breese Street, and positioned opposite IGA Supermarket and a busy pedestrian crossing.
Lockwood said the property offered a rare opportunity to invest in a prime location within vibrant Brunswick, surrounded by numerous recently completed high-density projects and a surging residential population.
“The owner is a private investor looking to hold the property as a long-term investment, and capitalise on the growing catchment in the immediate vicinity that is spurring demand for local business.”
There are approximately 1,500 apartments near the property that have either been recently completed or are in various stages of planning and construction.