Footscray shop sold 20% above reserve
www.PropertyReview.com.au - 29 November 2011
A TWO level building with two separate retail properties at Footscray has been sold at auction for $1,875,000 -- 20% above the reserve by Kliger Wood Real Estate.
Located at 31 and 31A Leeds St, the property was bought by a local private investor at an indicative yield of about 3.6%. The building with a combined area of 768 sqm is held in two titles with a business 1 zoning under the local planning scheme. The property has a total street frontage of 10.69 metres and is a regularly shaped land area of 384 sqm.
Both tenants are established Asian traders with Number 31 leased to a business which trades as Emma’s Seafood Yong Tofu, as a retailer of Asian food and groceries. The lease here is until April 2014 with the tenant holding a further three year option to renew. The current annual rental is $34,000 with all outgoings payable by the tenant. The lease allows annual 3% increases with a market review on exercise of the option.
31A Leeds St is also leased until April 2014 with a three year option for the tenant to renew. The rental is also $34,000 plus outgoings paid by the tenant with annual increases at 3% and a market review at exercise of the option. The tenant trades as Buu Buu in the retail sale of children’s, men and ladies clothing.
Kliger Wood selling agent Lou Montalti said that the auction created an opportunity to gain a freehold position in the vital retail and commercial precinct of central Footscray.
The retail properties in this area are extremely tightly held so to see a property of this magnitude presented for investment sale is rare indeed.
”The building appeared to be in sound condition and offers excellent future potential for refurbishment and development with the appropriate permits. My price expectation was of the order of $1.5 million and with the combined annual rental for both tenancies of $68,000 gives a low indicative yield that would be comparable with Melbourne’s other foremost strip retail centres,” Montalti said.
City lot swaps hands
www.businessday.com.au - 10 September 2011
A PROBLEMATIC city development site with a permit sold after auction on Thursday for an as-yet undisclosed price.
The 556-560 Flinders Street property, at the north-west corner of Downie Street, has been earmarked over the years for a variety of developments, of varying heights.
At one stage, a scheme was prepared for a 33-level commercial tower with 25-levels of strata office suites. Another proposal would have seen 101 apartments squeezed onto the 291 sq m block, opposite the new Northbank Place complex, between Spencer and King streets.
The property passed in at auction on Thursday for $3.18 million, but sold afterwards to an undisclosed buyer. The permit offered with the site is current to December. Construction of a new building needs to start two years from that date.
Selling agent Russell Meerkin said the purchaser may choose to modify the permits and plans. Mr Meerkin sold the property with Kliger Wood colleague Grant McKenzie. Michael Cementon, of Carlton-based agency S8 Property, was the conjunctional agent.
Vacant Main Road Property Fetches $695,000
www.propertyreview.com.au - 25 July 2011
A TWO storey retail and residential property on Hawthorn Road in the Caulfield commercial precinct has been sold by Kliger Wood Real Estate for $695,000.
Known as 164 to 164A Hawthorn Road, the property comprises a period style brick building with a recently vacated retail or office space downstairs and a three bedroom residence behind and above.
Kliger Wood agent Lou Montalti said the property offered the opportunity to an investor to refurbish or alternatively an owner occupier.
He added that the buyer is an owner occupier who intends to refurbish the property for their own occupation.
The property was offered with vacant possession although a tenant for the street level space of approximately 30 sqm was originally on a monthly tenancy, at a gross annual rental rate of $10,309 plus GST.
The property with a street frontage of 5.9 metres has a total land area of 251 sqm and is zoned Business 1.
"The Hawthorn Road area is tightly held and the opportunity to purchase this property offered many options," he concluded.
Bakery Building Sells for $820,000
The Age - 13 July 2011
A retail property in the main street of Croydon has been sold after auction by Kliger Wood Real Estate for $820,000 on an indicative yield of 5.48 per cent.
Known as 150 Main Street and bought by a private investor, the property -- long established as a bakery -- was offered on behalf of a deceased estate.
With street frontage of five metres, the single-storey brick shop also has rear access and car parking .
The building area is 108 sq m and the site 248b sq m with a Business 1 zoning.
The present bakery holds a five-year lease that began on May 1, with the tenant holding another five-year option to renew.
The annual rent is $45,000 plus GST, with annual CPI reviews, plus a market review on exercise of the option.
Bumper Result Made After Auction
Herald Sun - 12 July 2011
Kliger Wood Real Estate secured the post-auction sale of 150 Main St, Croydon, for $820,000.
The retail property deal produced an indicative yield of 5.48 per cent.
The single-storey brick shop has rear access with onsite parking.
Building area is 108sq m on a 248sq m property and is leased annually for $45,000 to a bakery business with a five-year lease.
Kliger Wood selling agent Grant McKenzie said the site was “the type of easily managed investment that would appeal to either private investors or smaller superannuation funds”.
Changing Face of Carlton
Herald Sun - 28 June 2011
A prominent freehold in Carlton's Little Italy that had been in the same family for 50 years has been sold for $1.9 million, to show an indicative yield of 3.7 per cent.
Located at 231 Lygon St, the double-storey building which is home to Intrepid Travel was auctioned by Kliger Wood Real Estate and Kelly & Shiel.
The building has a frontage of 5.14m with a total area of 116sq m.
Its current annual rent is $70,304 plus GST.
Kliger Wood's Russell Meerkin said: "This property is surrounded by quality occupancies and it was a rare opportunity to purchase a holding in arguably the best area of Lygon St."
Intrepid Investment
Property Review Weekly - 3 June 2011
A prominent freehold on Melbourne's beloved Lygon Street is currently being makreted by Kliger Wood Real Estate in conjunction with Kelly & Shiel. Found at 231 Lygon Street, the investment is being offered for sale on behalf of a family who have held it for over 50 years. It is due for auction on Friday 24 June at 2:00pm, on-site.
With a frontage of 5.14 metres and a depth of 22.6 metres, giving an area of 116 square metres, the two-storey solid brick building comprises offices upstairs and a travel agency at street level, tenanted by Intrepid Travel under a five-year lease which commenced in December 2008. The lease provides a further option period of five years as well as 4 per cent annual increases, with a review to market at the commencement of the option period. The current netannual rental payable is $70,304 plus GST.
Located on the western side of Lygon Street, in the retail precinct between the Faraday and Grattan Street intersections, the property also has rear access from Lygon Lane. Kliger Wood selling agent Russell Meerkin says that the auction presents a first class opportunity to acquire a securely tenanted freehold in a premier inner-suburban location.
"This property is surrounded by quality local and international occupancies and is a rare opportunity to purchase a holding in the best area of Lygon Street," he said.
"I am anticipating that offers will be in excess of $1.6 million."
The Hit Parade
Herald Sun - 10 May 2011
The price paid last week for a block of Parkville apartments on one of Melbourne's famous boulevards came with a $500,000 bonus for the vendor.
Agents Kliger Wood Real Estate sold the block at 135-137 Royal Pde to a private investor for $2,313,000. The property has four two-bedroom apartments in classic condition and little changed since the property was built, probably in the late 1950s.
Kliger Wood selling agent Lou Montalti said that the apartments are all on one title so the purchaser could look to refurbishment and strata titling individually in future.
"As the property sits in a key location close to Princes and Royal Park and opposite the University of Melbourne I was expecting bids in the mid- to high-$1 million range, so the sale, which was almost $500,000 over the reserve was a massive result," Mr Montalti says.
The agent last week also sold the corner building on 541 King St, on the northern city fringe, to a private investor for $2.92 million.
Fully leased with potential for redevelopment, the property has a frontage of 13.65m to King St and 24.38m to Stanley St, and across three levels is 827sq m with basement car parking.
CBD Office Suite
Property Review Weekly - 21 April 2011
An office suite at 373 King Street, Melbourne, is currently being marketed by Kliger Wood. Found opposite the Flagstaff Gardens in a brand new building on the corner of Jeffcott Street, the suite is 85 square metres in size and is available with vacant possession for a sale price of $429,000.
The suite offers quality accommodation with airconditioning and extensive shared services and facilities on the second level. Kliger Wood agent Russell Meerkin says that, with interest rates steady and expecting to remain so, there is a compelling case in favour of businesses owning their own premises.
"The expected future tightening in demand for office accommodation in the Melbourne CBD as the year progresses suggests that demand and values for office investments, or for owner-occupation, are likely to strengthen," he said.
The agents are also currently marketing suites at 343 Little Collins Street, either leased or with vacant possession.
Vasey Does Well
The Age - 16 April 2011
VASEY RSL Care - the latest name for the former RSL Veterans and Widows Trust Limited - has sold two former aged care centres in bayside Melbourne for a speculated $7.5 million.
In the biggest deal, residential developer BPM, headed by Jonathan Hallinan, has paid a speculated $6 million for Vasey's former Rumbalara centre at 171 Church Street in Brighton near the busy retail precinct. The 2592 sq m site, with rear access to Black Street, is expected to be rebuilt as a medium density apartment complex.
Elsewhere in Brighton, BPM is building apartment complexes in Bent, Loller, St Andrew's and Wells streets, Willansby Avenue and North Road. It is also planning to rebuild a Hampton site as flats.
In Sandringham, Vasey has reaped another $1.5 million, sources say, from the sale of a 2345 sq m former aged care centre at 56 Abbott Street. Kliger Wood represented Vasey, which recently relocated residents from the rundown Brighton and Sandringham complexes to a new 128-bed Brighton East centre.
City Fringe Office Building
Property Review Weekly - 15 April 2011
A standalone corner building on the northern city fringe is to be offered for auction by agents Kliger Wood Real Estate, on Thursday 5 May at 3.00pm on-site. Located at 541 King Street, on the north-west corner with Stanley Street, the sales agents say that the building is fully leased with potential for future occupancy or redevelopment, taking advantage of its Mixed Use zoning. The agents also think the potential to strata title the building will be of interest. A price in the mid $2 million range is expected.
Kliger Wood selling agent Lou Montalti says that the building occupies a regular site with a frontage of 13.65 metres to King Street and 24.38 metres to Stanley Street, giving a site area of 332 square metres. The total building area is 827 square metres over three levels, plus the basement, which is used for car parking for 11 vehicles. Each floor has car parking spaces allocated to it.
Each of the three floors of modern office accommodation is subject to a separate lease. The occupier of the lower and top levels trades as Complex Security Management and uses the building for administration and training purposes, while Comproperty Pty Ltd occupies the offices on Level 1. The combined annual rental is just over $172,000 with the leases expiring in 2012 and 2013, although further options are provided for. The tenants also pay either fixed annual increases or CPI. Montalti points out that the highly visible building is located within an area of the Melbourne city fringe where in recent years there has been significant revitalisation and redevelopment, including residential conversions, of many of the older structures there.
Building With Two Tenants On Market
Herald Sun - 12 April 2011
MARKET interest in the mid-$2 million range is expected for a detached three-level office building at 541 King St, West Melbourne.
The building is fully leased to two tenants - Complex Security Management and Comproperty - for a combined yearly rental of more than $172,000 with expiry dates in 2012 and 2013.
Kliger Wood agent Lou Montalti said the property was in an area where there had been significant revitalisation of buildings.
Auction of the 332 sqm site in an area zoned mixed use will be on May 5.
Former Care Sites Go Up For Sale
Domain - 19 February 2011
VASEY RSL Care can expect about $8.5 million from the sale of two former care facilities, which are, in effect, now residential development sites.
The biggest property, at 171 Church Street in Brighton, near the ritzy retail strip, has been known since 1971 as Vasey's Rumbalara facility.
On a 2592-square-metre block and with access at the back to Black Street, Rumbalara includes a commercial kitchen and off-street parking. It's expected to sell for between $5.6 million and $6 million.
Further south in Sandringham, Vasey is selling a similarly sized facility at 56 Abbott Street.
The 2345-square-metre site, also known as the Waratah Lodge Hostel, includes a single-level complex built in 1975. It's expected to sell for between $3.7 million and $4 million, according to Kliger Wood agent Nick Breheny, who is marketing both sites. Tenders for the sites close at 3pm on Friday, March 18.
The properties are zoned Residential 1. Vasey has moved residents to a new 128-bed facility at 709-723 Hawthorn Road in East Brighton.
Law Firm Buys Into 250 Queen Street
The Age - 16 February 2011
MELBOURNE investor Brendan Sullivan has sold a CBD Strata office floor for $1.2 million ($6,300 per square metre) to a Melbourne law firm. Selling agent for the 190sq m eighth floor of the 10-level 250 Queen Street building was Grant McKenzie from Kliger Wood. Mr Sullivan said the $6,300 per sq m rate reflected a coming undersupply of office space.
Askew House Opens Up
The Age - 5 February 2011
AFTER Lonsdale Street's historic Askew House sat unoccupied for almost a decade, refurbished office space at the building recently hit the market for rent.
The art deco building at 364 Lonsdale Street sold to its current owners in June 2001 for $4.05 million and has just had a major refurbishment. A sixth level, with a large balcony on three sides, has been added to the 1937 building.
Askew House is widely recognised by one of its ground-floor tenants, the JB Hi-Fi DVD Video Superstore outlet. However, as upstairs office levels were vacated over the past decade, they were not re-leased.
Kliger Wood's Rogan Sedger expects the recently renovated 3400 sqm high-end office space to attract either a major corporate, prepared to take the space as a whole, or a group of smaller tenants that may commit to part of the space. The asking rent is $350-$360 per sqm a year.
Mr Sedger said the building levels were taken back to the bare concrete and that the subsequent office refurbishment cost the owners many millions of dollars.
Before the office was bought, a permit existed to extend Askew House and refit the internal space into student apartments.
Earlier this week, the Property Council of Australia released its Office Market Report, which showed Melbourne CBD office vacancy fell from 6.5 per cent to 6.3 per cent. This makes it the best performing CBD office market on the mainland (Hobart came in at 4.6 per cent).
Within the industry, a CBD office vacancy rate below 7 per cent is considered healthy. Perth, Brisbane and Adelaide have the highest CBD office vacancy rates in the country.
Sydney - Australia's biggest CBD office market - recorded a drop in CBD vacancy from 8.5 per cent to 8.2 per cent.
In a show that corporate Australia is improving, Sydney tenants have snapped up nearly all of the last of that city's highest-quality ''premium'' space - known to pull in rents of $1000 per square metre a year or more - almost twice that of Melbourne's best.
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