- Four Chapel Street freeholdings have sold to local investor for $5.825M, in deal negotiated by Fitzroys
- Marks first time property has sold since being purchased by former owner in the 1940s
- Showcases resilience of Chapel Street shopping precinct, as area undergoes several developments
Four adjoining freeholds in South Yarra’s famed retail precinct, Chapel Street, have sold for $5.825 million to a local investor.
These latest sales bring Fitzroys‘ total sales of major shopping strips within the last few weeks to an eye-watering $41.585 million
The property parcel at 587-593 Chapel Street was campaigned by Fitzroys agents Mark Talbot and David Bourke.
The sale marks the first time the four freeholds have changed hands since purchased by the former owner in the 1940s.
Coveted Chapel Street freeholdings sold
The Chapel Street parcel spans 345 sqm of Activity Centre-zoned land, with each of the four freehold buildings possessing their own title.
The property offers an expansive 14.6m of street frontage to Chapel Street and rear access from Penny and Pattison Lane.
The freeholds are currently tenanted by Jumi’s Cafe, Bisonte and Green Cup, attracting interest from several bidders. The property sold at auction to a local investor at a passing yield of 2.9%.
“This was a really good result reflective of the demand from buyers we’re seeing across the market.”
David Bourke, Fitzroys
“The market continues to recognise the resilience shown by Melbourne’s shopping strips, and we’ve seen again there’s a large amount of capital pursuing these types of opportunities after a lack of quality stock was made available over the past two years.”
Mr Talbot added that the property presented huge potential for investor, part owner-occupiers, value-add players and developers, all reflected in the inquiries received by Fitzroys.
“It’s incredibly rare to find an opportunity as versatile as this, let alone in the absolute
prime of arguably Australia’s most famous shopping strip,” he said.
Chapel Street remains resilient
Mr Talbot described Chapel Street as in the midst of a “transformative period”, with new developments always underway in the lively pocket of South Yarra.
“South Yarra’s undergoing a transformative period that is bringing new residential, retail, office, and hospitality offerings, and the beating heart of that is Chapel Street.”
Mark Talbot, Fitzroys
Despite the impacts of Covid felt deeply throughout Victoria, Chapel Street remained one of the strongest retail precincts in the state.
According to Chapel Street’s annual report for 2020-21, the area was the only Victorian shopping precinct to keep more stores open than closed in the financial year.
The report also indicated a decline in the retail strip’s vacancy rate in February 2021, as compared to the pre-Covid rate in 2019.
The Chapel Street area is also receiving significant investment, with an array of new projects and redevelopments set to continue its transformation.
Property developer Gurner received approval last week for a $1.5 billion redevelopment of the iconic Jam Factory, in partnership with Newmark Capital and Qualitas.
The project will deliver a brand new five-tower development to Chapel Street, combining retial, residential, hotel and commercial spaces.
Meanwhile, Melbourne-based developers Goldfields are closing in on the completion of Goldfields House, a luxurious office building located at 627 Chapel Street.