Brunswick corner shop with development upside sells for $5 million – almost twice reserve
A multi-fronted shop on a busy Brunswick corner opposite Franco Cozzo’s outgoing furniture store sold at auction today for $5.02 million – a staggering $2.22 million over reserve.
Eight groups made a total of more than 100 bids for 462-464 Sydney Road.
The 757 square metre Commercial 1 zoned site at the south east corner of Victoria Street includes a 717 sqm showroom occupied by Magic Dollar.
The discount retailer signed a five year lease (with no renewal option) just before Savills Jesse Radisich, Nick Peden and Mark Stafford listed it for sale.
Based on the starting annual rent ($131,453), the property is trading on a low 2.6 per cent yield.
The vendors have owned it since 1986.
Brunswick booming
About five kilometres from the Melbourne CBD, at the centre of a popular retail strip, the selling agents spruiked the redevelopment potential of the Brunswick block.
In 2018, octogenarian furniture retailer Franco Cozzo announced plans to build an eight storey apartment building, with 32 dwellings, on airspace atop his eponymous shop, across the road to the north of 462-464 Sydney Road.
The ground floor of the businessman’s proposed redevelopment would be fitted out as a restaurant for his daughter.
On the south side of the Magic Dollar site, a seven storey apartment building was a couple of years ago permitted to replace the former Cornwell Mitre 10.
CBD Development Group recently completed a 12-storey apartment tower – the suburb’s tallest – at 288 Albert Street, not far from the Magic Dollar corner.
Elsewhere in Brunswick Peregrine Projects is developing a seven level residential building in the airspace of the former Sarah Sands Hotel, last occupied by Bridie O’Reilly, at 29 Sydney Road.
In late January we reported Sydney institution Stockland was paying $15 million for a 4010 sqm timber yard at 429-435 Albert Street.
Only three weeks earlier, Mirvac, a rival Sydney builder, paid a speculated $25 million for a 7500 sqm collection of industrial sites, and terrace homes, between 397-403 Albert Street.
Both the Stockland and Mirvac sites abut parkland and were recently rezoned to allow for the construction of nine storey apartment buildings.
Mirvac’s proposal will contain build to rent components.
