A Sorrento commercial freehold at the gateway to the Mornington Peninsula’s premier retail precinct has been listed for sale.
The 232sqm landholding located at 174 Ocean Beach Road, on the corner of Melbourne Road, will go to auction on the Saturday of the Labour Day weekend, March 7.
A versatile, double-storey building with a striking sandstone façade has been home to eateries for the past 38 years and currently occupied by the popular The Boss’s Daughter café.
With a new five-year lease, the property provides annual income of $104,000 +GST and expenses.
CBRE’s Mornington Peninsula and Melbourne Strip Retail Investments team of Rorey James, Mark Wizel, Nic Hage and JJ Heng will manage the sale, with 2020 the fifth-consecutive year the specialised team has taken a Sorrento investment opportunity to auction on the Labour Day weekend.
“The property has a great track record of successful businesses, largely due to the attributes of the retail position and the tenants it attracts,” Mr James said.
“The position at the entrance to Sorrento provides excellent signage exposure and the almost-double-width footpaths allow for highly-valuable outdoor seating.
“The property’s position will undoubtedly be a key attraction for investors who understand the drivers of successful retail.”
The building has triple-street frontage accounting for 44m, across Ocean Beach Road, Melbourne Road and a rear lane.
“The flexibility of the property offers a range of future value-add possibilities,” Mr James added.
“These attributes will attract buyers with a development background who would look to hold for the medium-to-long term and eventually capitalise on the untapped potential.”
The Mornington Peninsula is regional Victoria’s most-visited tourism area, drawing more than 8.2 million domestic and international tourists in the year ending June 2019, injecting over $1.3 billion into the local economy.
“Over the past five years we have watched the Mornington Peninsula go from strength to strength as an investment location,” Mr Hage added.
“Investors recognise the area’s increasing tourism numbers, and are taking confidence in the significant personal investment from high-net-worth families.
“This includes the $40 million investment into the Jackalope luxury hotel, and the Gandel family’s $45 million open-air art gallery and award-winning restaurant at Pt. Leo Estate.”
CBRE has handled the past eight transactions along Ocean Beach Road, notably the sale of Sportsgirl Sorrento for $4.07 million, Country Road Sorrento for $7.125 million and the Peninsula Cinema portfolio for $10 million on behalf of the Kirby family.
An on-site public auction for 174 Ocean Beach Road, Sorrento, will be held at 11am on Saturday March 7.
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.