Local and overseas investors are showing interest in an incredibly rare Toorak Road, South Yarra trophy investment opportunity that has hit the market, in the latest prime Melbourne shopping strip offering for 2023.
Fitzroys’ Lewis Waddell, Chris Kombi and Ben Liu are marketing 109-111 Toorak Road & 1A-1C Murphy Street, South Yarra, which will go to auction on Friday, 13 October at 1pm onsite, on behalf of a local family that has held the property for almost 50 years.
The freehold building comprises 390sqm of building with five shops plus a first-floor office and has an expansive street frontage of over 37 metres in the absolute prime trading section of Toorak Road, South Yarra.
The multi-tenanted investment is underpinned by a renewed five-year lease from March 2024 to national real estate group McGrath and offers an estimated fully-leased income of $250,000 net per annum.
Expectations are in the high $4 millions.
“This is an incredibly rare opportunity to buy a corner like this in South Yarra, as families typically hold onto them for generations,” Waddell said.
“The property is in the absolute prime trading section Toorak Road and on the corner of a prestigious street in Murphy Street, making it an ideal trophy investment. We’ve been receiving interest from local and overseas investors looking for a generational, long-term holding with secure income.”
According to Fitzroys’ latest Walk the Strip report, vacancies in Toorak Road, South Yarra have come down again in 2023 to 5.6% and have nearly halved since 2021.
“We’re still seeing investors put their faith in income-producing bricks-and-mortar assets at a time of share market and residential market volatility,” Kombi said.
“Higher interest rates clearly haven’t deterred investors from pursuing high-quality opportunities.”
Fitzroys has recently sold multiple assets in the absolute prime of Melbourne’s high performing shopping strips. Kombi and Waddell sold 1014 High Street, Armadale for $3.525 million, on a sharp 3.4% yield, and Fitzroys has also sold 35 Church Street, Brighton, home of big four bank NAB, for $7.15 million on a 3.5% yield and land rate of $24,826 per sqm.