- An iconic bar and restaurant is expecting over $4.25M
- An office within Melbourne's legal precinct to fetch well north of $3M
- An award winning office comes to market in South Yarra
In the latest wrap of Victorian commercial, it is all about bars. From lawyers to hospitality, the latest listings put the spotlight on some of Melbourne’s swankiest sites, and sectors that are not often in the limelight.
Bouzy Rouge comes to market
The Richmond bar and restaurant, located along 470 Bridge Road, has been listed for sale by longtime hoteliers, David, and Angela Carey.
Sitting on a 325 square metre site, the freehold property is expected to fetch well over $4 million.
Before becoming the Bouzy Rouge under Jose and Sandra De Oliveira some 20 years ago, the property was previously known as Dover Castle Hotel.
CBRE Hotel’s Mathew George and Scott Callow along with Teska Carson’s Matthew Feld and Luke Bisset are managing the sale via an Expression of Interest campaign closing May 23, 2023.
“The rental income of the Bouzy Rouge is $180,290 per annum with the current lease expiring in January 2026 and a further two-year option thereafter. This property might suit an owner-operator, likely someone from the hospitality sector who’s willing to collect rent for the short term and then pick up a prized freehold pub,” George said.
“We have seen continued levels of strong activity in our sector over the past 12 months and anticipate high levels of interest in this one, Richmond is the one suburb in town where every publican wants a pub but they’re hard to find.”
Legal precinct also faces low supply challenges
Cushman and Wakefield’s research has found that Melbourne’s legal precinct is seeing significant demand for strata office space, with the market largely driven by local owner-occupiers and small to medium enterprises, comprising 80% of the buyer demographic.
Lawyers returning to work in the CBD are also pushing demand up, with the limited supply putting pressure on the local market.
“The precinct only boasts seven strata titled commercial office buildings, with most whole floors owned within SMSF and family trust structures by long-term owner-occupiers,” said to Anthony Kirwan, Cushman & Wakefield’s Associate Director Investment Sales, Victoria.
“The Legal Precinct is one of the most tightly held pockets in the Melbourne CBD, and there have only been four strata office transactions in the past 18 months since Covid, with an average pricing of around $10,000 per sqm” he said.
Recent sales in the precinct include Level 5, 414 Lonsdale Street, Melbourne, which sold for $1,500,000 for 154 square metres of office space, and Level 12, 256 Queen Street, Melbourne, which sold for $3,500,000 for 312 square metres of office space. Both sales were vacant possession and achieved an average of $9,740 per square metre and $11,218 per square metre, respectively.
Against this backdrop, a strata office on Level 3, 271 William Street has come to market via an international expressions of interest campaign closing Wednesday 31 May 2023 with a price guide of $3 million to $3.3 million through Cushman & Wakefield.
Award winning office comes to market
A South Yarra office located at Level 1, 529 Chapel Street has been listed, including an expansive rooftop entertaining terrace, offices, meeting rooms, and communal facilities.
Winner of New York’s Best of Year ‘Small Office Award,’ the property is fully leased to leading Victorian land sales and marketing specialist, red23, with additional rental income derived through an LED signage lease to Maple Media.
The listing comes as South Yarra is set to see significant levels of development and investment go into the locale.
According to Oliver Hay, Cushman & Wakefield’s International Director & Co-Head Investment Sales, VIC the investment in South Yarra’s development pipeline is a testament to the area’s strong economy, vibrant community, and its position as a highly desirable location for investors.
“This investment will bring jobs, new infrastructure, and modern amenities to the area, further strengthening South Yarra’s appeal to businesses and residents.
“Some of the most notable upcoming projects include the Capitol Grand South Yarra… and the Yarra One… These two projects alone will add more than 1,000 new residences to South Yarra and bring a new level of luxury and sophistication to the area, not to mention VicLand’s 10,000 sqm investment grade office at 11-13 Wilson Street, South Yarra and Saint Germain at 489-505 Toorak Road, Toorak comprising 13,195 sqm of mixed-use office and luxury retail” he said.
