A two level arcade in Williamstown’s central retail strip sold for $5.92 million at a well attended auction yesterday.
Five investors contested for 61-65 Ferguson Street which traded for $492,000 over reserve. More than 60 bids were received.
It was the first time the asset has been offered for sale in over 50 years.
On a 729 square metre block, the 1205 sqm complex is fully leased to eight occupiers.
Based on the annual rental return, it is exchanging on a 4.4 per cent yield.
Vinci Carbone directors Joseph Carbone and Frank Vinci marketed the asset to both investors and developers (given its zoning, the parcel could be considered for a four level building atop an underground car park).
The agents said “it was extremely pleasing” to see competitive bidding for a well located retail investment given the current economic backdrop.
“It was clear from the bidding and the depth of buyers that attended and participated that the market was attracted to the location together with the income stream being offered,” Mr Carbone said.
The buyer was a local investor which plans to retain 61-65 Ferguson Street as an income producing asset.
Arcade at the centre of everything
The property is at the heart of the suburb’s retail precinct, near the T-intersection with Douglas Parade, 260 metres from the waterfront.
Williamstown is about nine kilometres south west of the Melbourne CBD however.
The historic Williamstown Town Hall – which has been undergoing a renovation in recent years – is two blocks away, as is the suburb’s contemporary Sally Draper designed library.
Williamstown’s former RSL, for nearly 100 years on a 2084 sqm block at 130 Ferguson Street and 90-92 Melbourne Road – opposite Dennis Reserve – has recently been replaced with a childcare centre.
AV Jennings is behind one of the suburb’s most controversial new medium density developments – its $450 million Waterline Place replacing the historic Port Phillip Woollen Mill and Oriental Hotel.
Launched in 2016, Waterline Place includes about 600 dwellings including in apartment buildings, the tallest rising 10-storeys.