The Ashburton premises of high-profile cafe Mr Burton have been sold by Ray White Commercial.
“Not only is it positioned in a thriving retail strip with with an abundance of daily passing traffic, it is also surrounded by banks, pharmacies and other nationally recognised retailers,” says Mr Rizzo, who had the listing with Ray White Oakleigh colleague Theo Karkanis.
Mr Karkanis says: “The property was passed in at the October 31 on-site auction, on our recommendation, and sold minutes later to the highest bidder for $1,675,000, representing a 3.5 per cent net yield.”
“The purchasers were local investors who had been on the market for some time and we were thrilled we were able to orchestrate a successful result for both parties.”
The tenant is on a three-year lease that started in July 2016, currently returning $59,458 per annum (plus GST and outgoings), with three further four-year options and 3 per cent fixed annual increases.
The property is Zoned Commercial 1 (C1Z) and has 169sqm of lettable area and total land area of 230sqm.
Mr Rizzo says the property attracted unprecedented interest and appealed to many experienced investors.
“There were more than 50 people in attendance on auction day, with multiple bidders,” he says.
“During the campaign, we received 70 direct inquiries and conducted nine inspections, as well as two second inspections.”
Mr Karkanis says: “Information memorandums were sent to 49 parties, Section 32 vendor statements were provided to 25 prospective buyers and the listing attracted more than 2200 views online.”
“Credit goes to our marketing team as once again we were able to attract both interstate and local bidders.”