This article is from the Australian Property Journal archive
MELBOURNE businessman Paul Solomon is believed to be the new owner of Balaclava landmark Beller House, with the $22.25 million price tag reflecting an almost $10 million value uplift for the property since trading for $12.5 million in 2014.
The latest deal marks the third time the 3,132 sqm building, on the 2,720 sqm site at 281A-289 Carlisle Street, also referred to as Carlisle Corner, has changed hands since the 2014 deal.
It sold again for $18.5 million 12 months later to the now-vendors, who have realised a healthy $3.75 million increase on the property in around two-and-a-half years.
The sale price reflects a land rate of $8,000 per sqm and building rate of $7,000 per sqm.
A title search shows Moose Toys chief Solomon bought the property, following an expressions of interest campaign handled by CBRE’s Mark Wizel, Rorey James and Nathan Mufale, in conjunction with Gross Waddell’s Michael Gross and Benjamin Klein. The agents confirmed the sale but were unable to comment.
Zoned Commercial 1, comprises a two and three-level office and retail building with 18 tenancies and returns around $1.09 million per annum. Occupants also include a gym, restaurant and medical business.
The property was built in 1973 at the gateway of the popular retail strip, positioned in the heart of Melbourne’s Jewish community.
Carlisle Street, that major retail strip of the inner south-eastern suburb, has seen several key commercial properties change hands recently.
Late last month, the recently redeveloped part-three level building at 157 Carlisle Street, which has ground-floor retail space and five two-level apartments, sold for $5 million at a 4.4% yield to a local buyer.
It has a new 10-year retail lease from December 2017 to the tenant of 20-years, Hot Bargain, and an on-site car space, while the residential tenancies are fully leased on short-term deals for a combined income of $222,937 per annum.
In December, the 1,227 sqm two-level retail arcade and adjoining Coles supermarket at 228-232 Carlisle Street sold for $11.1 million at a 4.3% yield. The arcade has six ground-floor shops and two first-floor offices, and include Vintage Cellars and the City of Port Phillip.
Two years ago, another major corner site on the strip, Carlisle House at number 318-320, sold for $8 million to private investor at a tight 2.5% net yield. The 1,174 sqm site has a building area of 1,118 sqm and is zoned Commercial 1.
Australian Property Journal
