Melbourne, 31 May 2016- An outstanding result has been achieved for a brand new strata retail property in Melbourne’s CBD. 137 Bourke Street sold for $4.5 million and underpins the continuing demand for prominent east end property, setting a new benchmark for the ground floor retail market.
137 Bourke Street is located under the newly built 19-level residential ‘Metropolitan’ development. It benefits from retail frontage to Bourke Street and is surrounded by three of Melbourne’s premiere office towers, offering unprecedented foot traffic. The property comprises 141sqm on the ground floor and a 172sqm basement.
CBRE’s Paul Tzamalis and Tom Tuxworth sold the property in conjunction with Cushman & Wakefield’s Patrick O’Callaghan and Adrian Prince on behalf of the vendor VIC Investments Management Group (VIMG), who has just launched its latest mixed use project at 141 La Trobe Street named ‘The Peak’.
Mr Tzamalis said the sale price of $4.5 million works out to over $22,000 per sqm for the ground floor and over $7,500sqm for the basement (which had no existing access).
“This represents a premium given that it was only offered as a cold shell. It is expected that a hospitality venue will look to lease this with CBRE Retail Leasing already fielding interest from the market,” Mr Tzamalis said.
“The drop in interest rates by 25bps also helped the purchaser who was looking to acquire this as a long term investment to fuel their suburban development business.”
Mr Tuxworth said there is a lack of property for sale in the CBD under $10 million at present, with buyers flocking towards income producing strata assets.
“This is the first shop to be sold between Russell St and Spring St since the Virgin Active gym was sold at 138 Bourke Street in 2013,” Mr Tuxworth said.
Cushman Wakefield Director, Patrick O’Callaghan also commented by saying that the; “Hype and activity of Bourke Street Mall is overflowing to this end of town, as retail space becomes more scarce in the central retail core of the CBD.”
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