Melbourne, 29 July 2014 – A St Albans retail property – home of the popular Big Sams St Albans Market – has sold under the hammer for $8.11 million.
CBRE exclusively sold 3 St Albans Road in front of a crowd of more than 160 people, with the property strongly contested by nine different parties, before being purchased by a private Victorian investor.
The sale translated to a strong passing yield of 5.58% and a building rate of $6,048psqm.
The popular market site, which covers 6,242sqm, features a 1,775sqm retail market comprising 19 stalls, as well as a 445sqm freestanding liquor store.
CBRE Victorian Retail Investments agents, Mark Wizel, Justin Dowers and Rorey James, said the successful sale was further evidence of strengthening market conditions.
“This sale is another signal that the market is willing to pay premium prices to secure non-core assets, with the continued lack of supply of prime retail investments creating a significant supply/demand imbalance,” Mr James said.
“This trend has been further enhanced given the emergence of offshore and interstate buyers entering into the Victorian commercial property market, with two interstate and four offshore bidders competing at the auction.”
“There is a lot of confidence in the retail market in general. Positive news in consumer spending is leading to more people wanting to grow and start retail businesses, which is underwriting demand in both retail investment and development”, Mr Dowers added.
The property is located in the heart of St Albans, an established Melbourne suburb approximately 17km north-east of the CBD.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website atwww.cbre.com.au.