Lawyer Peter Vodicka has sold a small Little Collins Street investment held for 26 years.
Restaurateur George Skyiotis – a former business partner of George Calombaris – picked up the triple storey Art Deco asset at #267 paying $8.45 million reflecting a low 1.3 per cent yield.
On a 203 square metre Capital City 1 zoned block, the property was marketed for its medium-term development upside.
It was offered with a five year lease to music bar Fika Island, which occupies the top two levels.
A retailer on the ground floor – a former Lora Jane tenancy – is on a month-to-month agreement.
All up the lettable area is 380 sqm and annual return is $110,000.
Buyers still chasing CBD freeholds: agent
Fitzroys’ Chris Kombi said the 267 Little Collins St deal reflects a land rate of $41,625 per sqm.
“Even with further interest rate rises expected, investors still clearly consider CBD freeholds to be a safe place to put their money in the medium-term and this part of the market remains very competitive,” he added (story continues below).
“There’s widespread confidence that visitation rates will continue trending upwards and we’ve already seen a great rebound in night-time and weekend numbers,” he added.
“The property also serves as an excellent landbank opportunity…the purchaser can earn a significant income stream from a secure lease while assessing its longer term options,” according to the executive.
“The property is in a thriving CBD location…between Swanston and Elizabeth streets, opposite The Walk, diagonally opposite David Jones and neighbouring Howey Place”.
Royal Arcade and Block Arcade are also nearby.
The sale follows Mr Vodicka listing another CBD asset for lease – at 33 Bourke St.
With 205 sqm over two floors – configured with offices and an apartment – the renovated Victorian, which retains several heritage features, is being marketed by MGO Property’s Martin O’Halloran.
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