This article is from the Australian Property Journal archive
A PORTFOLIO of three investment properties at Yarraville in Melbourne’s inner west, has sold for a total of $4.567 million.
Agents Kliger Wood Real Estate sold two properties to private investors and the third to the sitting tenant. The three holdings are all in Anderson St Yarraville.
The first property, 17 Anderson St sold for $902,000. It is a retail shop leased to shoe retailer Tootzies under a new three year lease with no further options, which commences from November 01 at a net rental of $44,200 plus outgoings with annual 4% increases. The building has a total area of 83 sqm with 57 sqm on the ground floor and 26 sqm on the mezzanine level together with a rear car park.
Kliger Wood agent Nick Breheny said this auction was the first opportunity to secure a prominent retail holding in the Anderson St strip and was anticipating bids to exceed $800,000.
The second property, at 33 Anderson St, is leased to local residential real estate agency Wayne Sweeney & Associates with a new lease which will commenced from 15 February next year for five years with one further option of five years.
The initial annual rental under the new lease will be $68,099.27 per annum net with outgoings to the total of 70.71%. There are 4% annual rental increases allowed. The building has a ground floor space of 165 sqm with another 80 sqm of offices above. There is also an onsite NAB ATM which contributes a further $5,861.73 in annual rental.
Located at the rear, also known as 25 Ballarat St, is a separate residential apartment totalling 157 sqm. Having just been vacated this apartment has been leased at $26,000 pa.
Breheny said he anticipates that offers for this prime holding would be in the $2 million region as it is a highly visible corner property with a new lease covenant and it sold at auction for $2,230,000.
The third auction at 45 and 45A Anderson St comprises a ground floor retail property at 45 and the residential property at 45A, which adjoins and this property was sold to the tenant for $1,435,000.
The ground floor is tenanted by the Tandoori Times Indian restaurant under a three year lease which commenced from 1 June 2010 with three further three year options to renew. Rental is $60,833 with the tenant meeting all outgoings with 4% annual rental increases.
Number 45A is a separate three bedroom residential property let on a monthly tenancy at a current annual rate of $15,360 with the outgoings met by the landlord. The tenancy area is 100 sqm on each level plus garage/storage on the ground level and a balcony on the first floor.
Breheny says he was anticipating interest in this property would be in the $1.4 million plus price bracket.
“This was a unique auction offering in a city fringe location where the opportunity to acquire one retail property at auction would be rare enough.
“But these three holdings all with secure enduring traders and tenancies is a special opportunity. Yarraville is regularly noted for its changing lifestyle and appeal for young families so I anticipate each of these properties will appeal to investors in particular,” he concluded.
PropertyReview
