This article is from the Australian Property Journal archive
A Hawthorn retail property leased to a cafe has sold at auction for $1.15 million on a yield of 5.3%.
CBRE’s Rorey James, Jackie Hanna and Paul Tzamalis handled the sale of the 737 Burwood Rd Hawthorn property in Melbourne’s inner east. It is leased to Café Jitters on a five-year lease, with options until 2025.
They said the property was hotly contested with five bidders competing for the property, driving the price upwards from the first bid of $800,000.
James said the property attracted strong interest from both local and offshore parties.
“In a sign of continued market strength, the property was on the market following the first bid of $800,000. It was keenly contested by a number of bidders, before being knocked down to a local buyer and regular customer of the café,” James said.
“The 5.3% yield was considered strong, given the shops off street location, however, the low interest rate environment continues to encourage investors to pay sharper prices to secure these retail investment assets,” Hanna concluded.
Australian Property Journal
