A prominent corner retail property has fetched $5.02 million at auction in a hotly contested battle between 8 bidders and with a total of more than 100 bids.
Savills Melbourne agents Jesse Radisich, Nick Peden & Mark Stafford ran the auction campaign for 462-464 Sydney Road, Brunswick (Corner Victoria Street) which achieved a result of $2,220,000 (78%) above initial expectations.
The property is leased to a two-dollar shop with a new 5 year term with no further options, and delivers the purchaser a net income stream of $131,453 per annum.
Positioned within the heart of the Sydney Road retail precinct, the 717sq m corner retail building on a 757sq m landholding features dual street frontage of over 66 metres plus rear access. The sale reflects a building rate of $7,001/sq m and a land rate of $6,631/sq m.
Mr Radisich said that the campaign drew widespread interest from the full buyer market.
“With significant land content of 757sq m, short term security and clear future upside, this opportunity appealed to investors, developers and owner occupiers, with each buyer group aggressively bidding at the auction.”
“The family, who has owned the property since 1986, is absolutely ecstatic with the result.”
“Income producing properties with upside continue to attract significant interest. This result is a textbook example of that,” Mr Radisich added.
Mr Peden said the attendance of some of the markets most prolific investors and developers at the auction and their willingness to bid and bid strongly, was verification of a positive outlook from some of the most informed individuals within the industry.
“With the record low interest climate, investors are extremely active at the moment.”
This transaction signifies Savills Melbourne’s third transaction in Brunswick in 2020 with an estimated total sales volume of over $35 million.
Learn more about Savills Metropolitan & Regional Sales team.