A local private investor has paid $4.1 million on a passing yield of 4.1 per cent for a prime corner retail investment on Toorak Road in South Yarra at auction.
The 92 Toorak Road and 53-59 Myrtle Street property, which sold for the first time in almost 30 years, attracted strong pre auction enquiry and a crowd of more than 50 from which five bidders pushed the price to more than $500,000 over the reserve.
According to selling agents, Teska Carson’s Matthew Feld and Michael Ludski, the property’s extensive frontage and exposure to a key inner-suburban retail strip, diverse tenancy profile, and location within one of Melbourne’s most sought after retail and residential precincts had been the key selling points.
"The property represented an exceptional opportunity to secure a prime corner investment property in what is a highly desirable and tightly held, inner city, location. Indeed the property last sold nearly 30 years ago underscoring just how tightly held properties in this precinct have become,’’ Mr Ludski said.
The property comprises a two level building with seven tenancies including five retail tenancies fronting Myrtle Street, and a corner café and a separate office tenancy with Toorak Road access.
The 326 square metre site, zoned Commercial 1, has excellent exposure to Toorak Road and Myrtle Street with a combined 44.8 metres frontage.
Mr Feld said the property sold subject to six leases at a current rental of $170,000 per annum with a potential income of $195,000 per annum.
The vendor was a private Melbourne based investor.