A Melbourne investor has outbid several rivals for an Armadale retail and commercial property with a final bid of $10 million at what is believed to be a record land rate of $18,248 a square metre.
Teska Carson Directors George Takis and Michael Ludski, who managed the campaign in conjunction with JLL Directors Josh Rutman, Jesse Radisich, Tim Carr and MingXuan Li, said the hotly contested online auction for the 1213-1217 High Street property, followed more than 100 enquiries based on the prime location and the future development potential with a strong income stream.
The property comprises a two level, 674 square metre building on a 548 square metre site with 18 metres frontage and rear laneway access to 12 on-site, undercover, car spaces. It was sold subject to a lease to longstanding tenant, Jellis Craig, at a net rental of $370,920 per annum, with just over 12 months to run.
Mr Takis said the High Street strip remained one of the tightest, in terms of vacancy and ownership, in Melbourne, underpinned by a wide range of quality retail and commercial businesses in a part of Melbourne with a relatively high disposable income.
"This was an outstanding result for an outstanding property and indeed a rare opportunity to acquire a retail/commercial asset with upside on one of Melbourne’s most enduring and successful strips".
"Armadale’s retail and commercial precinct, with its eclectic mix of cafes, restaurants, fashion houses, and antique stores, has long been regarded as one of Melbourne’s best and tenant and investor demand bears that out," Mr Takis said.
He said the favourable Commercial 1 zoning had been an important consideration for a property that, while offering excellent tenancy prospects as is, provided flexibility for a range of future development outcomes including retail, residential, medical and hospitality (STCA).