A securely leased, retail investment property on Queens Road, Melbourne will go to auction on Thursday, with expectations it will fetch more than $2.8 million.
Located at 1 Queens Road, shop T4, the property is strategically positioned on the major intersection of St Kilda Road and Kings Way/Toorak Road, surrounded by both office and residential towers.
The 14 level, One Queens Road, is a high profile building containing around 550 offices with 2,000 plus office workers. The building also boasts one of the largest underground car parks in Melbourne with more than 650 spaces.
According to marketing agents, Teska Carson’s Gideon Marcus and George Takis, the property will be sold subject to a five year lease to Flick and Trick Pty Ltd, trading as Caliente Espresso Bar, at a current rental of $234,000 per annum from April 2015 with three further terms of five years and four per cent annual rental reviews with a market review at the option.
Mr Marcus said the sale presented a seldom seen opportunity to purchase a secure retail asset with an exceptional catchment area.
"Shop T4 presents a very good opportunity for purchasers to acquire what is an outstanding freehold retail property," he said.
"It is located in the heart of one of Melbourne’s most vibrant commercial and residential areas and has an extremely advantageous position at the base of an office building with 2,000 workers and is surrounded by both office and residential towers."Mr Takis said he expected strong interest from investors, including smaller syndicates and those looking to bolster self-managed super funds.
"Retail property has traditionally been regarded as one of the best investments for smaller investors especially those with non-discretionary spend tenancies such as food and beverages," he said.