Melbourne, 05 May 2016 – A sushi bar in the seaside town of Rye on the Mornington Peninsula has sold under the hammer for $1.565 million – the latest in a string of transactions in Victoria’s increasingly competitive retail market.
Prominently positioned at 2379 Point Nepean Road – one of Rye’s busiest retail strips - the 194sqm site is tenanted by the strong performing Sushi Express cafe.
A neighbouring property owner secured the site, which comprises a freehold, 160sqm two-storey building, on a yield of 3.3% - a particularly strong yield for a regional asset located more than an hour from the city.
CBRE’s Melbourne Strip Retail Investments team, comprising Rorey James, Sandro Peluso, Josh Twelftree and Benson Zhou, negotiated the sale on behalf of the local family vendor, with the onsite auction attracting a crowd of more than 150 people.
Mr James said the property’s premium seaside location attracted strong buyer interest.
“Bidding commenced at $800,000, with the property being placed onto the market around the $1,400,000 mark, which then sparked a frenzy of bidding all the way to the eventual sale price of $1,565,000,” Mr James explained.
“The result adds to a spate of strong transactions on the Mornington Peninsula in 2016, with other results including the Mitre 10 in Sorrento which sold for $11,465,000 and the Medical Centre in Mornington which sold for $4,025,000.”
In further evidence of the state’s strong performing real estate market, a mainland Chinese family recently outbid several local investors to secure a development site in Sorrento for $4.18 million.
The approximately 1,000sqm property at 141-147 Ocean Beach Road offers future potential for repositioning.
More than 160 people attended the auction, which had a starting bid of $3 million and eventually sold on a yield of 2.3%.
Mr James said Victoria’s retail market was continuing to gain momentum, with buyers recognising now as the ideal time to capitalise on attractive conditions.
“With higher levels of buyer enquiry in 2016 coupled with a significantly lower supply of commercial property being marketed for sale, landlords are now in a 'perfect storm' whereby they can capitalise on some of the strongest market conditions in decades,” Mr James added.
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