The property at 131 Cecil Street, on the corner of Coventry Street opposite South Melbourne Market, is expected to fetch more than $15 million.
Chef’s Hat’s lease expires at the end of next March and co-tenant Bed Bath N’ Table is on a monthly lease. The 1963-square metre, two-level building is on a large 1391-square metre site, returning a $748,040 annual income.
Fitzroys’ Mark Talbot, Tom Fisher and Lewis Waddell, with CBRE’s Trent Hobart, Nick Peden and Minty, are handling the campaign.
Around the corner, the Fitzroys team is also selling 168-174 Dorcas Street, a two-storey, 1077-square metre office.
It’s on a 694-square metre site on the corner of Tope Street. The ground floor is leased to CDS Worldwide, returning $162,690 a year.
It’s expected to fetch more than $4.75 million which is about the going price for that size office in the South Melbourne precinct.
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On the other side of Kings Way, at 31-33 Park Street, a 936-square metre double-storey office fetched $4.9 million last week. Records show the vendor paid $6.075 in 2017. Ouch.
A developer purchased the vacant building, which is on a 465-square metre piece of land. He’s planning to occupy for it the next five to 10 years.
Lemon Baxter agents Hans Fan, Paul O’Sullivan and Tom Burley sold the property.
Armadale high
A local investor has nabbed an Armadale office building for more than $25 million, the biggest deal recorded on the swanky High Street strip.
A clutch of strata owners, including owners of real estate agency Marshall White, were the vendors in the transaction which reflected a sharp yield of 4 per cent.
Cushman & Wakefield agents Oliver Hay, George Davies, Daniel Wolman and Leon Ma handled the deal which attracted 10 offers split between developers and investors on a 30:70 ratio.
The corner office block on High Street, Armadale, has fetched more than $25 million.
The Marshall White owners had attempted to sell their 10,000-square metre, second-storey office in 2022 for about $7 million.
It was worth holding. The 2417-square metre property is on a 1773-square metre site with an average lease term of 5.12 years.
University
CQUniversity has just signed a 12-year lease on the Bendigo Bank’s old HQ at 120 Harbour Esplanade, an 8300-square metre building adjoining the stadium and overlooking the water.
The university, based in Rockhampton, has long had a Melbourne presence, and will take up the space in early 2027 after a refurbishment and custom campus fitout.
CQU students are moving into 120 Harbour Esplanade, Docklands.
The deal was brokered by Etc. Melbourne’s Edward Knowles and Tony Landrigan and is the second big deal for Docklands this year.
Coles is moving to the old Medibank Private building after decades in East Hawthorn. The precinct has a vacancy rate of 20.9 per cent, according to the Property Council of Australia’s recent office report.
Nurseries
When two long-running suburban nurseries were listed for sale last year, it looked like the big properties could fall to developers.
Beasley’s Nursery at 195 Heidelberg-Warrandyte Road, Warrandyte.
Not to worry gardeners, the nurseries are safe. Records show The Greenery at 4 Banksia Street in Heidelberg has sold to experienced nursery owners, the Humphris family, who own the Mt Evelyn Garden Centre, for more than $3 million.
And the much-loved Acorn Nursery and Oaks Cafe at 673 Canterbury Road, Surrey Hills, has changed hands for more than $6 million.
The 40-year-old nursery, previously owned and operated by award-winning John Van Der Horst, is on 3035 square metres of residential-zoned land.
The Acorn Nursery at 665-677 Canterbury Road, Surrey Hills.
JLL agents Mark Stafford, Jesse Radisich, Josh Rutman, and MingXuan Li handled the transaction.
The Heidelberg property, held by the same owner-operators for 47 years, is on 2.33 hectares on the Yarra River near the huge North East Link works.
Colliers agents Alex Browne and Tim McIntosh did the deal but declined to comment.
With spring is in the air, there’s a fresh nursery to pick. The 50-year-old Beasley’s in Warrandyte, one of the first nurseries to open a cafe, is next on the market.
Its original owners are also ready for retirement so 195 Heidelberg-Warrandyte Road, is offered vacant. The nursery is on 10,730 square metres and is in a low-density residential zone.
Gorman Commercial’s Tom Maule and Dean Alexander, under instructions from transaction manager JACX, are running expressions of interest and expect more than $2.9 million.
Auction
One of Box Hill’s few remaining privately held properties goes to auction next month.
The 15 Market Street shop, leased to Polar Express, is next door to Box Hill Central, opposite the under-construction Suburban Rail Loop station entrance. Records show Whitehorse City Council sold the shop in 2005 for a bumper $8.33 million.
Stonebridge agents Rorey James, Nic Hage and Ian Lam are handling the auction and quoting $7 million to $9 million.
15 Market Street, Box Hill.
Later that month, they’re selling the KFC outlet in the busy Glen Waverley CBD, which is on a 374-square metre site, one of the biggest sites in the precinct.
The 670-square metre shop at 64-66 Kingsway, also leased to HeyTea, returns $390,000 a year in rent which should translate into a price between $8 million and $10 million, given the tight yields achieved in the area.
64-66 Kingsway, Glen Waverley.
In Moorabbin last week, four bidders competed for the Sportsmart showroom at 85 Cochranes Road, pushing the price past the $2 million reserve to $2.33 million, reflecting a tight yield of 3.5 per cent.
Sportsmart has been in the building since 1973 when the vendor bought it. An investor won the auction, and Sportsmart, which also occupies the building next door, is staying put. Rodney Morley handled the auction.
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