Melbourne

South Melbourne sale sets new record land rate

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.

04 May 2020

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.”For Australian/international news or global stories, follow us on Twitter: @cbreaustralia

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.

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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.