279-281 Lygon Street, Carlton
Melbourne’s prime shopping strip market is set for its next test, with the famous dining and lifestyle strip of Lygon Street, Carlton set for a generational property auction in September.
Fitzroys’ Chris Kombi and Shane Mills are marketing 279-281 Lygon Street with the auction set for Friday, 5 September at 1pm.
Expectations for the vacant two-storey 165sqm building are in the mid-$1 millions range. The campaign marks the first time in 53 years the property has been made for sale.
The property is positioned in a high-performing section of Lygon Street, just metres from the Faraday Street intersection, and offers an expansive frontage of more than 7.5m, and rear access via both Lygon Lane and Dorrit Street.
The ground floor is leased to an established tenant, and the first floor is offered vacant, providing scope to occupy, invest, refurbish or repurpose (STCA). Potential fully leased income is circa $90,000 per annum.
“This is a truly generational opportunity to invest in the prime of what is arguably Melbourne’s most famous dining and lifestyle strip. It’s a very tightly held part of Melbourne,” Kombi said.
The property is surrounded by a mix of notable traders including DOC, Brunetti, Fishbowl, Grill’d, Yo-Chi, Mecca, Peter Alexander, Johnny’s Green Room, Vintage Cellars and BWS, to name a few.
“The return in earnest of Melburnians dining out has Lygon Street buzzing. An eclectic wave of new restaurants, eateries and bars have been opening up on the strip, complementing the traditional Italian classics, as well as popular national and local traders, adding a new vibrancy to the strip.” Further regeneration of Lygon Street is happening just a few metres away from the 279-281 Lygon Street property at the iconic King & Godfree building, where the deli, wine store, café and restaurant Agostino are under renovation.
Melburnians dining and eating out, tourists visiting in bigger numbers, and students back at university have translated to vacancies in Lygon Street falling close to their lowest in years. According to Fitzroys’ most recent Walk the Strip report, vacancies on Lygon Street have come down from 20.0% in the depths of COVID to now sit at a healthy 7.5%.
Mills said the rapid transformation of Carlton to accommodate and encourage student and residential apartment developments will further support trade and activity along the strip.
He added that good accessibility is a key predictor of the performance of shopping strips.
“Lygon Street has excellent tram and bus connections in addition to plentiful public car park options, including the Elgin Street public car park providing over 200 car spaces.
“The brand-new Parkville Station, meanwhile, is set to open soon within walking distance from Lygon Street, as part of the Melbourne Metro Tunnel project.”
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