This article is from the Australian Property Journal archive
AN investment in Ivanhoe’s tightly-held Upper Heidelberg Rd has sold under the hammer for $5.225 million, the highest price paid for a retail freehold in the busy shopping strip.
Fitzroys’ Chris James and Chris Kombi sold the property at 137-139 Upper Heidelberg Rd, which has changed hands for the first time in 60 years.
The 263 sqm site is improved by a two-storey building of 505 sqm comprising two shops and a first-floor gym with a frontage of 13.33 metres.
James said the strong enquiry throughout the campaign led to fierce competition between six bidders at auction, and the sale price reflecting an exceptional land rate of $20,000 per sqm and tight 4.1% yield.
“The record result demonstrated the pent-up demand to acquire commercial property in this tightly-held market,” he said.
The ground level retail spaces have new five-year leases to longstanding tenants Romano’s Restaurant and French-style Laurent Bakery, and a five-year deal to first-floor tenant Vision Personal Training.
Kombi said the offering presented a rare opportunity to secure an iconic Ivanhoe property with an excellent tenant profile and significant passing income. According to Fitzroys research, Upper Heidelberg Rd currently features less than 1% retail vacancy, which Kombi said is a further testament to the strength of the strip.
Australian Property Journal
