The Balazo family has achieved a record price of more than $2 million from the sale of a mixed-use South Melbourne building which once housed their popular Baked in South Melbourne pizzeria.
A local investor has snapped up the 170 York Street property in a deal which highlights ongoing buyer demand for well-leased Melbourne commercial assets in the face of COVID-19.
The 112sqm corner site features a fully leased, three-level building offering 301sqm of office and retail space. The one-time ground floor pizzeria is now occupied by the Spit Roast Catering Company.
CBRE’s Dylan Kilner, David Minty and Chao Zhang managed the transaction, which has set a record land rate for South Melbourne of more than $18,000psm and reflects a sharp 4.5% yield.
“Pricing in Melbourne’s city fringe markets has remained stable, with the land rate achieved slightly above the rates being achieved in December 2019, pre COVID-19,” Mr Kilner said.
“South Melbourne is set to benefit from the Victorian government’s $11 billion Anzac Station development at the intersection of Park Street and St Kilda Road, approximately 500m from the property – allowing easy access to the Melbourne CBD and inner northern suburbs.”
Mr Minty added; “Buyers are still seeking quality, city fringe real estate opportunities, particularly mixed-use assets, knowing that if the retail market contracts, they can flip to office and vice versa.”
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