This article is from the Australian Property Journal archive
A THREE-level corner freehold in Collingwood in Melbourne’s city fringe has sold at auction for $2.56 million, on a 3.28% net passing yield and strong land rate of $12,487 per sqm.
Fitzroys’ Chris Kombi and Shawn Luo sold the 62 Smith St Collingwood property. Zoned Commercial 1, the 250 sqm building comprises ground floor shop, first floor office and basement, set on a 205sqm site with a large rear yard and car park, with corner frontage of more than 37 metres. The property is leased to established tenants Bini Gallery and Timmins + Whyte Architects.
“This was a rare opportunity to acquire a landmark property at the gateway to one of Melbourne’s most popular precincts,” Kombi said. “Investors and land bankers were attracted to property’s strong future value add and further development potential, given the area’s large number of office and residential developments taking place nearby that will further underpin the strong trading throughout Smith St and sustain rental growth.
Kombi said the strong sale price achieved reflected a significant 43% uplift for the vendors. Fitzroys also sold the property the last time it came to market, in 2013.
“Smith Street is the heartbeat of the generational change seen across Collingwood and Fitzroy that has seen the area evolve into one the most vibrant Melbourne locations, with a world class hospitality and nightlife offering, and a booming commercial office market, making it an unbeatable 24/7 location.”
It comes just weeks after Fitzroys sold the freehold at 95-97 Smith Street for $4.575 million at a tight 3.4% yield. The sale price showed a 76% uplift in value on the previous transaction in 2010.
