A high-profile, historic brick red building within Balaclava’s popular Carlisle Street retail strip sold at auction last week for $7.5 million.
More than 100 attendees sweated through the event held onsite
in 38 degree heat, with a northerly gale.
The double-storey, 515 square metre retail building with upstairs office occupies a 368 sqm Commercial 1 zoned block at the south east corner of William Street.
Fully leased, returning annual rent of $262,260, the
asset is selling on a low passing yield of 3.29 per cent.
Emmetts Real Estate’s Andrew Milligan, Charles Emmett, Geoff Emmett and James Beresford marketing 229-237 Carlisle Street as Balaclava’s best retail corner – with longer term redevelopment prospects.
At present, though, it is a passive investment.
Popular restaurant chain Grill’d occupies part of the
Other restaurants in the area include Ilona Stoller,
Ziggy’s Eatery, Batch Café, Yo-Chi and Las Chicas.
Coles, Woolworths, Chemist Warehouse, Priceline, grocer
The Little Hen and all the major banks are also in the vibrant pocket.
A block from the Balaclava train station, 229-237 Carlisle Street, which could also be gazetted as being in St Kilda East, is across the road from a new mixed use project comprising 38 apartments atop ground floor retail.
Mr Milligan described the property
as a classic Melbourne trophy.
Declining to comment about the
purchaser, or vendor, the executive said of the market – that there are plenty
of private investors seeking assets like 229-237 Carlisle Street.
Most of the prospective suitors
who inspected this site had no immediate redevelopment plans, Mr Milligan said.
In August, we reported that a 301 square metre block at 60-62 Nightingale Street, until recently controlled by failed developer Steller, sold with a permit for a five-storey office for less than $2 million.
Last year we reported that a nearby 1011 sqm site at 23 William Street – which cannot be replaced with apartments given its zoning – traded for $9.5 million, setting a record price for the land ($9,396 per square metre).