This article is from the Australian Property Journal archive
A STRATA-titled ground floor shop leased to Crust Pizza in Brunswick has sold at auction to a local investor for $1.135 million, following strong competition between four parties at auction.
Fitzroys’ Ervin Niyaz and Chris Kombi sold the Crust Pizza bar at 455-457 Sydney Rd.
The sale price reflects a building rate of $11,350 per sqm and a 4.7% net yield. The property is returning $54,000 per annum plus outgoings and GST.
Kombi said the investor was attracted to the Crust Pizza tenancy, due to not only the brand recognition of the tenant but also the property’s central location surrounded by a massive influx of residential development, and a resulting surge for food and beverage services.
Fitzroys’ latest Walk the Strip report showed vacancies along Sydney Rd, between Brunswick Rd up to Moreland Rd, tightened significantly in the year to June 2018, from 6.0% to 3.0% between Brunswick Rd and Victoria St and from 10.2% to 6.5% from Victoria St through to Moreland Rd.
Earlier this year, Kombi and Niyaz sold the nearby Beinart Gallery premises at 1 Sparta Place under the hammer for $860,000, at a tight 4.6% yield to a local investor.
Australian Property Journal
