This article is from the Australian Property Journal archive
A MELBOURNE investor has snapped up a Richmond commercial site for $8.3 million on a potentially record low yield of 1.22%.
335-341 Bridge Road features a two storey 685sqm retail building on a 703sqm coned Commercial 1 site, featuring 20 metres of frontage to Bridge Road and 33 metres to Gleadell Street.
George Takis and Larry Takis, directors at Teska Carson managed the sale via an expressions of interest campaign for a land rate of $11,806/sqm, with the successful investor planning to occupy the site upon the end of the existing leases.
“This is a location which has arguably been inner Melbourne’s most popular commercial and lifestyle precinct over recent years attracting a multitude of commercial tenants and residents which have driven a consequent surge in development,” said George Takis.
The current building has been subdivided into two self-contained tenancies, held by Australia post on a five year lease and NAB on a monthly basis, bringing in an annual return of around $285,000.
Due to the property’s development potential, the sales campaign fielded a wide array of interest, from developers, investors and owner occupiers.
“The corner site, providing excellent access, was then very appealing in a market short of such opportunities and so the very strong response to the marketing campaign and the ensuing result was not surprising,” continued Takis.
A preliminary scheme for a 14 level apartment building has been provided by RBi Architects, while a proposal for a subdivision has been drawn up but not lodged with the local council.