This article is from the Australian Property Journal archive
ANOTHER key commercial property in Balaclava’s Carlisle Street has changed hands, shortly after local landmark Beller House was put up for sale and the transaction of a retail arcade and adjoining Coles supermarket.
Offered for the first time in more than 40 years, the recently redeveloped part-three level building at 157 Carlisle Street, which has ground-floor retail space and five two-level apartments, sold for $5 million at a 4.4% yield to a local buyer.
It has a new 10-year retail lease from December 2017 to the tenant of 20-years, Hot Bargain, and an on-site car space. The residential tenancies are fully leased on short-term deals for a combined income of $222,937 per annum.
The sale price reflected a land rate of $22,831 per sqm.
Nick Peden and Jesse Radisich of Savills sold the property in conjunction with Besser & Co.’s Dion Besser.
At the eastern end of the popular retail strip, Beller House has been put up for sale for the third time within three and a half years. The owners are hoping to turn another quick profit from the 2,720 sqm site at 281A-289 Carlisle Street, which has a two and three-level retail and office building of 3,132 sqm and 44 parking space.
The property is expected to easily clear the $20 million mark, having last sold for $18.5 million in October 2015 after trading for $12.5 million just 12 months earlier.
In December, the 1,227 sqm two-level retail arcade and adjoining Coles supermarket at 228-232 Carlisle Street sold for $11.1 million at a 4.3% yield. The arcade has six ground-floor shops and two first-floor offices, with tenants including Vintage Cellars and the City of Port Phillip.
Almost two years ago another major corner site on the strip, Carlisle House at number 318-320, was sold for $8 million after being put for sale in for the first time in almost 30 years.
A private investor bought the property at a tight 2.5% net yield. The 1,174 sqm site has a building area of 1,118 sqm and is zoned Commercial 1.
Australian Property Journal
