Two retail assets on two of metro Melbourne’s most premium retail strips are being put to market, expected to generate a combined sale of $11.5 million.
Bringing two different offerings to market, one being a brand-new retail space while the other is a prime historical corner. The common denominator of their highly desirable locations in Armadale’s and Malvern’s local villages located just seven, respectively eight, km south east of the CBD, will drive strong interest.
833 High Street, Armadale, is the first property for sale, exclusively managed by Colliers’ agents Ted Dwyer and Ben Baines on behalf of Moda and is expected to sell for about $5.5 million.
The 543sqm retail space is currently leased by renowned premium grocer ‘The Leaf Store’, who recently signed a new 10-year lease with further 3 options of 5 years, providing a current annual income of $275,000 plus GST.
Colliers’ Director, Melbourne Metro Sales, Ted Dwyer, said the retail asset is positioned in an area currently experiencing record-breaking sales, including the penthouse atop, which sold $16million.
“We know demand is high in this area, having experienced it when we negotiated an off-market sale for Moda in the same building. The 111sqm shop, currently occupied by a cult patisserie, Lune, sold for $1.98 million on a tight 3.88 per cent yield, which is a building rate of just under $18,000 a sqm, an extremely strong result,” Mr Dwyer said.
The second retail asset today hitting the market is located in neighbouring Malvern, on 84 Glenferrie Road. Exclusively managed by Colliers agents Daniel Wolman, Alexander Leggo, Ted Dwyer and Ben Baines and is expected to reach a sale result of around $6 million.
Offered for the first time in almost 30 years, the 500sqm corner site, which comes with a 590 sqm building, was previously leased to National Bank Australia for over 100 years. Now sold with vacant possession, the trophy asset comes with significant value-add potential, including a multi-storey development (STCA).
Colliers’ Head of Investment Services, Daniel Wolman, said demand remains strong in blue-chip inner suburban locations, such as Stonnington, as investors, owner occupiers and developers seek a flight to quality in uncertain times.
“With limited stock brought to market in a while, appetite has built up for quality assets of this calibre. Retail opportunities in prime locations with secure long-term tenants remain in high demand,” said Mr Wolman.
There have been approximately $130m worth of freehold retail sales in the City of Stonnington YTD, with Colliers transacting $50 million in the past month. The recent sales of NAB’s flagship store in South Yarra, which sold under the hammer for $16.5 million on a yield of 2.53 per cent, being included in the mix.
Both assets are for sale via on-site auctions on Friday, 18th November 2022. 833 High Street, Armadale, is first being auctioned at 10:30 am, and the 84 Glenferrie Road, Malvern, auction will take place at 12:30 pm.
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