The double-storey art-deco shops – with three residential apartments on top – sit on a combined land area of 1480 square metres and currently return about $240,000 per annum rent. The asset was picked up on a yield of 4.8 per cent.
The property was sold with a permit to develop 11 office suites on land behind the six adjoining shops on the corner of Burton Crescent and abutting a public car park.
Shop-top offices have become more popular over recent years, as rents in the traditional suburban office retail hubs like Hawthorn and Mulgrave become more expensive.
New shop-top office developments are underway in popular retail focussed areas including Ascot Vale and Niddrie in Melbourne’s north-west and Blackburn in Melbourne’s east.
Gross Waddell director Jonathon McCormack marketed the Ivanhoe East property with Michael Gross.