Six-Level Melbourne CBD Trophy Freehold Underpinned by ASX-Listed Tenant Going to Auction

370 Little Bourke Street, Melbourne 

With Melbourne heaving during an AFL finals series in September, a six-level, 100% leased CBD trophy freehold anchored by an ASX-listed tenant will be going under the hammer. 

Fitzroys’ Lewis Waddell, Mark Talbot and Ben Liu are marketing 370 Little Bourke Street, known as Niagara House, for sale with the auction slated for Thursday, 18 September at 1pm on-site. 

Expectations are of $8.5 million-plus for the generational opportunity, with the campaign marking the first time in 27 years it has been offered for sale. 

The fully-leased property comprises 1,330sqm of building area, with major outdoor gear retailer MacPac, a subsidiary of ASX-listed Super Retail Group, occupying the ground and basement levels, with four levels of offices above. It returns a total rent of approximately $550,000 per annum and GST, providing scope for short-term rental uplift. MacPac pays a net rent including land tax as part of its lease agreement. 

On a unique triple-fronted, Capital City 1-zoned 329sqm site, the property is surrounded by Niagara Lane and Warburton Alley with combined street boundaries of 87.89m, and is located just a few metres away from the famous Hardware Lane hospitality and dining precinct, and the 24/7 Bourke Square Car Park, which has nearly 300 parking spaces. 

“This is an outstanding opportunity to acquire a fully leased freehold investment located in the retail core of Melbourne’s CBD, with potential for rental uplift and repositioning,” Talbot said. 

“Melbourne’s CBD is seeing hospitality resurgence and this property is ideally placed to capture the buzzing crowds that have returned to the city.  

“Investors and owner-occupiers will note this part of the city generates pedestrian traffic day and night from workers, residents and tourists, with Hardware Lane offering one of the CBD’s best dining and nightlife experiences.” 

Talbot said a booming night-time economy, world-famous roll call of events, the return to the office and the upcoming completion of the Metro Tunnel are all fuelling the retail and hospitality rebound in the CBD. 

According to Fitzroys’ latest edition of Walk the CBD, vacancies have come down over the past 12 months from 8.0% to 6.1%, and have been slashed by more than half since recording 14.1% two years ago. Hospitality, food and beverage and entertainment operators again drove the take-up of space over the past 12 months, with the proportion of these spaces increasing from 40.9% to 47.4% – and up further from the 34.1% at the beginning of 2023. 

Waddell said, “This outstanding freehold provides investors and long-term owner-occupiers with the exceptional flexibility to further value-add, part occupy or reposition part or all of the property, while each level is already strata-titled, allowing for future selldown options.” 

“We’re expecting broad interest from the market given the array of potential outcomes for the property.” 

Liu noted that the property is highly accessible, close to Melbourne Central station, multiple tram routes along Bourke, Collins, Elizabeth and Swanston streets, and bus routes along Queen Street.