The owner of 1989 Melbourne Cup winner Tawrrific, former real estate agent Barrie Griffiths, is selling a relatively large commercial investment in the heart of Carlton’s Lygon Street.
The double-storey, double-fronted Victorian earns annual rent of $203,615 from Café Cavallino, which has been operating on Lygon Street for 42 years.
It sits on a 560 square metre site zoned Commercial 1 being marketed as a development site as well as a trophy investment.
Emmetts Real Estate brokers Andrew Milligan and Charles Emmett are representing Mr Griffiths. The building could sell for more than $4.5 million which would translate to a passing yield of about 4.5 per cent.
Mr Milligan said properties in this part of Carlton, are extremely tightly held, and that investment opportunities like 185-187 Lygon Street do not come up often.
“Lygon Street is currently undergoing a resurgence in occupier demand as a string of major projects in the immediate vicinity reshapes the precinct,” Mr Milligan said.
“Lendlease, Singapore’s GIC and AMP in partnership with University of Melbourne have committed to delivering almost 1500 beds across three separate projects, which will add significantly to the booming population” of students, medical personal and young professionals in the area”.
“The recently refurbished King and Godfree building complements the successful line up and new additions to the area, including the upgraded Brunetti, Doc Espresso and Doc Pizza and Pidapipo.”
The agents said the location benefits from a diverse catchment including families, young professionals and students. Lygon Street, Carlton, is a leisure tourism precinct.
The property is close to the Parkville station, part of the Melbourne Metro project which is due for completion in 2025, and the Royal Exhibition Building and Melbourne Museum, the agents said.
Café Cavallino’s lease on the building expires in December, 2019.