A Corporate office warehouse in Moorabbin’s Parkview Estate, has achieved one of the highest prices the suburb has seen for some time, after being sold to a private investor for $14.75 million.
Crabtrees Real Estate handled the sale of 45-55 Fairchild Street, which was sold with established tenant, international publisher Hinkler Books on a current 5-year lease.
Crabtrees’ Chris McKenzie said being located within the Parkview Estate meant this corporate offering was a solid investment.
“Being in amongst major corporate players such as Electroclux, Bolle, Crabtree & Evelyn, Linen House and Moran living, means this really is a solid investment with long term upside,” he added.
Victorian Aboriginal Child Care Agency (VACCA) has leased 1,085sqm of newly refurbished office space in Dandenong for $284,000 pa net through a deal brokered by Crabtrees Real Estate.
The property, 2 & 4/1-7 Langhorne Street, was originally offered on the market as separate office suites and exchanged hands on a 5.5 year lease with a further term of 5 years.
“Currently located in a small, redundant space within the CBD of Dandenong, VACCA are rehousing their Dandenong operations to fully refurbished premises including car parking,” Crabtrees’ Megan Miles said.
VACCA is the lead Aboriginal child and family welfare organisation in Victoria, offering vital public services protecting and promoting the rights of Aboriginal children and young people.
Investors continue to seek prime retail properties with strong tenant profiles throughout Melbourne’s renowned shopping strips, with local and offshore demand resulting in a new land rate record for the blue-ribbon retail precinct of Church Street, Brighton.
Mark Talbot and David Bourke of Fitzroys sold 67 Church Street for $2.41 million under the hammer, with the sale price reflecting a land rate of $39,000 per sqm, and a sharp yield of 3.2%.
The property has a two-level 110sqm building with a five-year lease to international stationery company Smiggle, part of major retail player Solomon Lew’s ASX-listed Premier Investments, which has a $2.5 billion market capitalisation.
Talbot said the auction campaign attracted more than 90 enquiries from local and offshore investors and owner occupiers, and fierce competition from multiple bidders in front of a crowd of 120 people. A local investor eventually won out. He said Smiggle has occupied the building for close to 15 years, an extremely rare track record for a tenant.
“This presented an exceptional opportunity to acquire a freehold investment leased to an established, renowned tenant in the retail core of Melbourne’s number one shopping strip, and one of its most tightly-held.”
Talbot said Church Street, Brighton is a thriving shopping precinct and includes most of Australia’s new and established fashion operators.
Fitzroys research shows Church Street’s vacancy rate tightened to 1.3% over the past 12 months.
“We also received a large volume of interest from owner occupiers looking to give themselves an opportunity in future to operate out of a prized Church Street retail space,” he said.
“Situated in one of Melbourne's affluent suburbs, underpinned by a strong and established residential neighbourhood that includes some of Melbourne’s finest private schools and modern historical homes, the specialty strip attracts a large customer base and is an evergreen drawcard for investors and tenants.
“Church Street’s position in Melbourne’s blue-chip Brighton, strong reputation and constrained supply will continue to see commercial property tightly held and rental rates to rise further, with a long queue of retailers and operators always seeking space, offering investors longer-term security.”
Talbot and Bourke sold 67 Church Street on behalf of a private family. Last year, Talbot sold the shop and dwelling freehold at 83 Church Street last year for $3.08 million, at a precinct record yield of 1.9%.
It marked the first time the property had been offered for sale in 45 years.