A local investor has beat strong competition to purchase a dated Chinatown laneway building at auction for $6,850,000, representing a tight yield of 3.29%.
CBRE’s Melbourne City Sales team of Julian White, Nathan Mufale, Alex Brierley and Chao Zhang managed the sale campaign for the 22-26 Corrs Lane property, which offers three levels of retail space and a basement with a total lettable area of 962sqm.
The vendor purchased the property for $2.5 million in 2005 representing a gain of $4.35 million after previously attempting to sell the property unsuccessfully through two other agencies.
“The sale result highlights the overwhelming demand for Melbourne CBD assets even in non-core locations,” said Mr White.
“The key attraction for the buyer was the Chinatown location, with speculation that the high volume of Chinese tourists visiting Melbourne each year will drive rental growth in this precinct.”
Mr Brierley commented; “Over the last 12 months we have seen laneway properties attract main street prices, with buyers not afraid to roll up their sleeves and undertake refurbishment works on older style buildings.”
Other recent Melbourne CBD laneway transactions include the CBRE managed sale of 12-14 McKillop Street which sold to a local investor for $14.5 million in October 2018.
The next test of Melbourne’s CBD market will be the auction of the longstanding Tsindos Greek Restaurant at 197 Lonsdale Street which goes to auction on June 27th at 12:30pm.
CBRE’s Melbourne City Sales team of Julian White, Nathan Mufale, Alex Brierley and Chao Zhang managed the sale campaign for the 22-26 Corrs Lane property, which offers three levels of retail space and a basement with a total lettable area of 962sqm.
The vendor purchased the property for $2.5 million in 2005 representing a gain of $4.35 million after previously attempting to sell the property unsuccessfully through two other agencies.
“The sale result highlights the overwhelming demand for Melbourne CBD assets even in non-core locations,” said Mr White.
“The key attraction for the buyer was the Chinatown location, with speculation that the high volume of Chinese tourists visiting Melbourne each year will drive rental growth in this precinct.”
Mr Brierley commented; “Over the last 12 months we have seen laneway properties attract main street prices, with buyers not afraid to roll up their sleeves and undertake refurbishment works on older style buildings.”
Other recent Melbourne CBD laneway transactions include the CBRE managed sale of 12-14 McKillop Street which sold to a local investor for $14.5 million in October 2018.
The next test of Melbourne’s CBD market will be the auction of the longstanding Tsindos Greek Restaurant at 197 Lonsdale Street which goes to auction on June 27th at 12:30pm.
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About CBRE Group, Inc.
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.
About CBRE Group, Inc.
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.
