The warehouse-converted Brunswick bar occupied by Howler has sold for $4 million.
The price for 16 Michael Street – two blocks from Sydney Road – reflects a 2.6 per cent yield.
Twelve bidders contested at an online auction.
“Despite the property being leased to a hospitality operator who is battling the current lockdown situation, it was pleasing to see a strong turnout,” JLL director Nick Peden, who marketed the property with Jesse Radisich and Minxuan Li, said.
The buyer is a local investor.
The Howler building
The single-level bar spreads over the entire 905 square metre holding.
Its northern boundary abuts a public car park.
The pocket is three blocks from Jewell train station and a collection of sites VicTrack in 2014 sold to Neometro, which has since replaced them with major residential buildings.
In 2017, Howler found itself in a dispute with the former owner of the neighbouring office (8-14 Michael St), who was proposing an eight level apartment complex with – the pub argued – insufficient sound attenuation (story continues below).
That developer later sold the property as a permit-ready building block.
The purchaser however, an investor (and not the buyer of 16 Michael St), decided not to proceed with a rebuild – instead securing Howler as a tenant; that space now operates as Howlerland.
Brunswick building boom
Elsewhere in the suburb, earlier this week, we reported US real estate giant Hines paid $16.5m for a Ballarat St warehouse with plans for its first Australian Build to Rent project.
Last month, Mirvac spent $40m on a prominent site at the north west corner of Sydney Rd and Park St, expected to make way for traditional apartments.
Sixteen months ago – following another campaign by Mr Peden and Mr Radisich – a partnership comprising Molonglo and Aesop founder Dennis Paphitis outlaid $17m for the rundown Brunswick Market, with intentions for a mixed-use project.
Last year, a private developer lodged plans to replace the former Chamton factory, on Glenlyon Rd, with a multi-storey Bunnings, with which it has scored a pre-commitment.
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