ST KILDA
A tenanted retail property in the heart of St Kilda has been sold for $670,000. The 90 sq m property at 162A Carlisle Street was sold at auction by Ray White Commercial Oakleigh sales and leasing executive Ryan Amler. The marketing campaign attracted more than 40 inquiries and five bidders. A long-term tenant is paying annual rent of almost $40,000. Mr Amler said the building was close to restaurants, cafes and Balaclava station.
CBD
A building floor, Level 5 at 250 Queen Street, has been sold to a private investor for $1.15 million by Kliger Wood Real Estate. The property comprises a high-quality office area of 220 sq m and an adjoining 111 sq m terrace. The floor is occupied on a lease that expires in February, so the indicative return is 7 per cent. The net annual rent is $83,511, plus GST with building outgoings met by the tenant.
PORT MELBOURNE
Hospitality solutions provider Riva Corporation has bought a 130 sq m office in Port Melbourne, at 11/3 Westside Avenue. The two-storey property is in Portside Business Park and features five onsite car spaces and a modern glazed facade. CBRE's Harry Kalaitzis negotiated the deal at $380,000 on behalf of a private super fund. Mr Kalaitzis said the property's location was a key factor in the sale. "Close proximity to the Melbourne CBD, Westgate Freeway, Tullamarine Freeway and CityLink was of great appeal to Riva Corporation," he said. Riva Corporation is a solutions provider to the hospitality and retail industries, specialising in point of sales hardware and software.
NORTH MELBOURNE
A beautiful two-level terrace at 114 Dryburgh Street, North Melbourne, has been sold for $775,000 by ICR Property Group. Selling agent was Guy Naselli. North-west of Victoria Street and south of Queensberry Street, the property was previously leased for more than 15 years by the same owners and sold as vacant possession. The building area of 230 sq m is made up of ground floor and first floor bedrooms and a bathroom. Zoned mixed use, the site has great rear access from Little Dryburgh Street.
NEWPORT
A shop trading as an IGA supermarket and liquor store in Newport has been sold for $2.725 million by Gross Waddell. The 2-12 Mason Street property was sold by agents Michael Gross, Alex Ham and Daniel Greenlees on a yield of 7.63 per cent. The lease provides for a 10-year term, with further terms of four and five years. The rent is $208,000 a year, plus GST. The gross area is 585 sq m, plus four basement car spaces. The property forms part of a recently completed apartment complex comprising ground floor and three upper levels accommodating 26 apartments.
FUND FINDS A FLOOR
Industry superannuation fund CareSuper will lease a floor at 31 Queen Street. Josh Langdon, Colliers International associate director, office leasing, has negotiated a seven-year lease to CareSuper for 964 sq m on level 18 of the building, which is owned by Challenger Diversified Property Group. CareSuper was based over two floors in a building nearby. Mr Langdon said the company wanted to upgrade and move on to a single floor while remaining in the same area. The lease was struck at a rate of low $400s a square metre. CDI has embarked on an external makeover of the building since taking ownership a year ago, which had taken 31 Queen Street from 15 per cent vacancy to almost 5 per cent. CareSuper, established in 1986, is said to be the largest industry fund specialising in superannuation for people engaged in professional, managerial, administrative and service occupations.
Frequently Asked Questions about this Article…
What were the key details of the St Kilda retail property sale at 162A Carlisle Street?
A tenanted retail property at 162A Carlisle Street, St Kilda (90 sq m) sold at auction for $670,000. Ray White Commercial Oakleigh (sales and leasing executive Ryan Amler) ran a campaign that attracted more than 40 inquiries and five bidders. The long-term tenant pays almost $40,000 a year, and the property is close to restaurants, cafes and Balaclava station.
What investment return and rental income were reported for Level 5, 250 Queen Street?
Level 5 at 250 Queen Street (220 sq m office plus a 111 sq m terrace) sold to a private investor for $1.15 million via Kliger Wood Real Estate. The lease on the floor expires in February and the sale was described as having an indicative return of 7%. Net annual rent is $83,511 plus GST, with building outgoings met by the tenant.
Who bought the Port Melbourne office at 11/3 Westside Avenue and why was the location attractive?
Hospitality solutions provider Riva Corporation purchased a 130 sq m two-storey office at 11/3 Westside Avenue in Portside Business Park for $380,000. CBRE's Harry Kalaitzis negotiated the deal on behalf of a private super fund. The buyer cited close proximity to the Melbourne CBD, Westgate Freeway, Tullamarine Freeway and CityLink as key location advantages.
What are the sale specifics for the two-level terrace at 114 Dryburgh Street, North Melbourne?
The two-level terrace at 114 Dryburgh Street (230 sq m) sold for $775,000 through ICR Property Group, with Guy Naselli as selling agent. The property — north-west of Victoria Street and south of Queensberry Street — was previously leased for more than 15 years by the same owners and was sold as vacant possession. It features ground floor and first-floor bedrooms and a bathroom and has rear access from Little Dryburgh Street.
What were the terms and yield for the Newport IGA supermarket and liquor store sale at 2–12 Mason Street?
A shop trading as an IGA supermarket and liquor store at 2–12 Mason Street, Newport (gross area 585 sq m plus four basement car spaces) sold for $2.725 million via Gross Waddell. The sale was on a yield of 7.63%. The lease provides a 10-year term with further terms of four and five years, and the rent is $208,000 a year plus GST. The property forms part of a recently completed apartment complex with 26 apartments above.
What are the CareSuper leasing details at 31 Queen Street and how did the building's vacancy change?
Industry superannuation fund CareSuper agreed a seven-year lease for 964 sq m on level 18 at 31 Queen Street, negotiated by Josh Langdon of Colliers International. The building is owned by Challenger Diversified Property Group (referred to as CDI), and the lease was struck at a rate in the low $400s per square metre. Since CDI took ownership a year ago and undertook an external makeover, vacancy in the building fell from 15% to almost 5%.
Which agents and brokers handled the commercial and retail property deals mentioned in the article?
The article names several agents and brokers: Ray White Commercial Oakleigh (Ryan Amler) for the St Kilda sale; Kliger Wood Real Estate for 250 Queen Street; CBRE's Harry Kalaitzis for the Port Melbourne deal; ICR Property Group (Guy Naselli) for the North Melbourne terrace; Gross Waddell (agents Michael Gross, Alex Ham and Daniel Greenlees) for the Newport IGA; and Colliers International (Josh Langdon) for the CareSuper lease.
What examples of rental yields and indicative returns appear in these recent Melbourne property transactions?
The article gives specific examples: the Level 5 office at 250 Queen Street has an indicative return of 7% (net annual rent $83,511 plus GST), while the Newport IGA supermarket sold on a yield of 7.63% (rent $208,000 a year plus GST). Other transactions list sale prices and rents (for example, the St Kilda retail asset sold for $670,000 with a tenant paying almost $40,000 a year) that investors can use to compare income and purchase price.
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