This article is from the Australian Property Journal archive
AN Armadale retail and commercial property in a popular shopping precinct has sold for $10 million with a lease to a real estate agency.
A Melbourne investor outbid several rivals for the 1213-1217 High Street property following more than 100 enquiries.
The property consists of a two-level, 674 sqm building on a 548 sqm site, with 18 metres frontage and rear laneway access to 12 on-site, undercover, car spaces.
It sold with just over 12 months left to run on the lease to Jellis Craig, bringing a net annual rental of $370,920 per annum.
The sale price represented a record land rate of $18,248 per sqm, according to selling agents Teska Carson’s George Takis and Michael Ludski, who managed the sale campaign with JLL’s Josh Rutman, Jesse Radisich, MingXuan Li, and Tim Carr.
Takis said the High Street strip remained one of the tightest, in terms of vacancy and ownership, in Melbourne, underpinned by a wide range of quality retail and commercial businesses in a part of Melbourne with a relatively high disposable income.
“This was an outstanding result for an outstanding property and indeed a rare opportunity to acquire a retail/commercial asset with upside on one of Melbourne’s most enduring and successful strips.”
He said the favourable commercial 1 zoning had been an important consideration for a property that, while offering excellent tenancy prospects as-is, provided flexibility for a range of future development outcomes.
“This precinct has strong property investment fundamentals that are well recognized within the investment/development community and that was reflected in the significant representation of developers in pre-auction enquiry,” he said.
