Melbourne, 8 April 2013 – The strength of the Melbourne retail market has underpinned a series of recent sales, including the ground floor of 144 Little Collins Street.
CBRE City Sales agents Josh Rutman and Ed Wright sold the 50sqm strata retail suite at an on-site auction for $1.45 million. Multiple bids were lodged on the day by five separate parties.
CBRE Senior Manager Josh Rutman said the property had been put on the market by vendor DDK Holdings at a price of $1,210,000. Aggressive bidding followed with the property eventually transacting for $1,450,000, representing a passing yield of 6.2% and a record rate per square metre for the building.
“The property drew interest from investors and owner occupiers, due to the monthly lease currently in place,” Mr Rutman said.
“The opportunity to acquire a ground floor retail property in the tightly held ‘Paris End’ of the CBD is very rare and therefore attracted a wide range of potential users.”
City Sales Negotiator Ed Wright added; “Investors interested in the property took great comfort from the lack of vacancies in the surrounding area along with the high amount of ‘foot traffic’ which passes the property on a daily basis.”
This transaction represented the second ground floor retail property to be traded by CBRE in the past week. The other involved 377 King Street, which changed hands for $900,000. The property was leased to ‘Trend Café’ on a 5 + 5 year lease term with the sale price translating to a yield of 6.5% on the passing income.
Ed Wright and Josh Rutman steered the ‘off market’ campaign, with the property purchased by a local private investor through their Self-Managed Superannuation Fund (SMSF).
“The recent changes in SMSF regulations relating to commercial property acquisition as well as the current low interest rate environment are making it more attractive than ever for investors to purchase commercial property, particularly well located CBD retail assets,” Mr Wright said.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website atwww.cbre.com.au.