Inner west gentrification lures buyers

Charlie Buxton’s Cadence Property Group hasn’t let the coronavirus stop momentum, picking up its fourth acquisition this year. Cadence has paid $10 million for a 2.07 hectare industrial property at 36-38 Roberts Street, West Footscray.

The vendor, Winnipeg Textiles, will lease back the 7821 sq m warehouse and office for a 2.5 year period.

Colliers International agent Charlie Woodley, who negotiated the deal, said “the infill market location is a key focus for developers, investors and occupiers.”

143-145 Bourke Street, Melbourne
143-145 Bourke Street, Melbourne

Cadence managing director Charlie Buxton said “West Footscray is one of the fastest gentrifying suburbs in Melbourne and we envisage strong underlying land value growth whilst we undertake a value-add strategy. This is our second industrial syndicated investment this financial year and while the Victorian lockdown has presented challenges, we have continued to stay active, closing multiple deals in Victoria and around Australia,” Mr Buxton said.


The property is on the corner of Indwe Street, opposite Hansen Reserve and located between West Footscray and Tottenham railway stations.

Cadence also paid $14 million for the former quarantine station in Spotswood.

Riverside auction

Investors have been digging deep into their pockets for the second week of auctions.

A high-net-worth family paid $8.3 million – $1 million over the reserve – for an industrial holding at the top of Church Street on the Yarra River.

The family of Australia’s chief science officer, Alan Finkel, had owned the 2520 sq m property at 53-58 Church Street for decades.

Gross Waddell agent Alex Ham said about 50 people attended the auction and five bidders competed for the leased property, which sold on a stunningly sharp 2.9 per cent yield.

A yield that low indicates the acquisition is not just an investment but a land banking opportunity.

Three tenants lease the buildings on the site returning $217,500 a year. Buyers advocate Heath Bedford acted for the buyer.

Bourke freehold

A double-storey restaurant at 143-145 Bourke Street is going to market for the first time in more than 50 years.

Formerly the Izakaya Hachibeh Japanese restaurant, the 205 sq m restaurant is squished between new towers on the east end Bourke Hill – Quest on Bourke on one side, Metropolitan apartments and the Citadine hotel on the other. The Southern Cross office towers are a short walk away.

The building, remodelled in the late 1970s, is on a 166 sq m parcel of land with rear entry to Coromandel Place and a direct line to Golden Age’s new strata office project at 130 Little Collins Street.

Records show the Freeman family paid just $80,000 for the property in 1969 and can expect around $5 million this year.

It goes to auction on December 16 with Colliers International agents Daniel Wolman, Oliver Hay, Chris Ling and Leon Ma and Gross Waddell agents Michael Gross and Raoul Salter.

533 Blackburn Road, Mount Waverly, Melbourne 
533 Blackburn Road, Mount Waverly, Melbourne 


Claude Roda’s Magic Hand Carwash is offloading three sites in Glen Iris, Ferntree Gully and Geelong.

The carwash portfolio, which is going to auction on December 10, is expected to fetch around $7 million.

The 26-year-old franchised chain has 20 sites and is one of the country’s biggest carwash and detailing businesses. The three sites have 10-year leases in place.

Mr Roda said the sales will help “free up capital and underpin the next growth phase of the business”.

“We are looking for more sites around the country. The industry has proven to be robust since we started 26 years ago and operations have rebounded strongly since the various state lockdowns.”

CBRE agents Scott Hawthorne, JJ Heng, David Minty and Scott Orchard are marketing the properties: an 1100 sq m site at 1557 High Street, Glen Iris; a 1617 sq m property at 1021 Burwood Highway, Ferntree Gully; and a 1050 sq m outlet at 250 La Trobe Terrace, Newtown.

Mr Hawthorne said: “Each site is on a large, high-exposure landholding with flexible zoning, suitable for multiple development outcomes in the future.”

South Melbourne

A law firm has purchased 255 Coventry Street in South Melbourne for $2.7 million on a 4 per cent yield, about 12 months after it first went on the market.

Dixon Kestles agent Simon Regan, who struck the deal, said the buyer has long-term plans to occupy the 211 sq m double-storey Victorian-era shop.

The sitting tenant, Hoxton Hair, has been cutting and dying in the shop for about 15 years and has one year remaining on its lease and a five-year option.

154 Johnston Street, Fitzroy, Melbourne
154 Johnston Street, Fitzroy, Melbourne


Windsor-based Dragonfly Flowers & Designs is making its first foray north of the Yarra into the Brunswick Street precinct.

Fitzroys agent Lewis Waddell has leased 154 Johnston Street on a five-year term (with two five-year options) paying $75,000 a year. The double-storey 240 sq m building is on the corner of Hartford Street with room at the rear for on-site parking.

Mr Waddell also recently leased 127 Greville Street, Prahran to online florist Honeybee and Blossom, who sold so many flowers during lockdown that it opened a bricks and mortar shop.

Florists and plant shops performed well during COVID because more people were working from home and putting more time and energy into their work and living spaces, he said.

Medical clinics

A doctor has snapped up the former ANZ branch in Mount Waverley for $7.2 million, with plans for a new medical clinic. The 1000 sq m building is on 4500 sq m of land at 533 Blackburn Road, on the corner of Lionel Road, near Waverley Private Hospital.

Already converted into a medical centre, it was sold vacant with a permit for 19 health practitioners by CBRE agents Sandro Peluso and Marcello Caspani-Muto.

There had been strong levels of interest from healthcare groups during 2020 with owner-occupiers and super-clinic developers keen to get a foothold, Mr Caspani-Muto said.

“An underlying permit for 19 practitioners holds substantial value for medical groups who can turn the property into a one stop shop with GP, physiotherapy, radiology and pharmacy services,” he said.

The property, which has parking for 57 cars, is next door to the fully leased office complex at 541 Blackburn Road, which fetched $21.83 million last year.

Also changing hands is the Woodleigh Waters Medical Clinic at 137 Moondarra Drive, Berwick for $5.05 million on a yield of 5.8 per cent; and the Kingsway Medical Clinic at 5/40-42 Montclair Avenue for $1.296 million.

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