Melbourne, 18 September2013– 66-68 Little La Trobe Street, Melbourne, has been sold for $1,500,000, CBRE City’s first sale following the election of a new government.
The property was marketed via an ‘off market’ basis with unconditional contracts of sale being exchanged for $1,500,000, equating to a tight yield of 2.3%. The property is leased to a Korean BBQ restaurant until 2014, with the result further underpinning the pent up demand for well leased & located retail investment properties in the Melbourne CBD.
It follows the recent sales of 38-40 Lt La Trobe Street ($2,460,000 / 2.5%) and 62-64 Lt La Trobe Street ($2,203,000 / $17,910/sqm*) which were both sold at auction in 2013.
CBRE City Sales agents Ed Wight, Josh Rutman & Mark Wizel were the selling agents.
City Sales Negotiator Ed Wright commented that whist the property was marketed via an off market basis only, “investors interested in the property took great comfort from the lack of vacancies in the surrounding retail properties, along with the surrounding developments and expected residential growth to the area”.
The property is in close proximity to the MY080 Residential Development which is being developed by Maylasian group, Mammoth Empire, on the corner of A’Beckett and Elizabeth Street, as well as being located directly behind this groups next residential project, 398-406 Elizabeth Street, which was sold by CBRE City Sales for $15,125,000 in November last year.
“What we have been experiencing with our recent transactions is a very strong market demand for retail investment assets, especially those in highly trafficked locations in the CBD. This demand is being driven by both local and off shore investors, who are prepared to actively compete to secure the assets,” Wright commented.
Mark Wizel, Director of the City Sales team, said that following the announcement of the new government over the weekend, CBRE have noticed significant increases in enquiry from owners of property wanting to know what their property would be worth.
He also commented that the team was starting to witness businesses being more confident in the retail space and taking advantage of the current low interest rate environment and now looking to purchase freehold as opposed to leasing.
“CBRE City Sales will be bringing 261 Little Collins Street to market in the coming weeks, with the vendors seeing the recent results as well as the current low interest rate environment as the perfect time to market their property. The 114sqm ground floor retail property is leased to well-known fashion retailer “Bell & Barnett”, and will be going to auction on the 18th October,” said Mr Wizel.
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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.