“We’re hoping tenants not severely affected by the financial implications of COVID can get back on track and see the light at the end of the tunnel,” he said.
The inner northern suburb is also seeing transactional activity. Down the road, four neighbouring properties at 279-287 Wellington Street fetched $5.32 million in an off-market transaction negotiated entirely during the COVID lockdown.
A local investor has bought the four sites, which cover 748 sq m, on a tight yield of 1.69 per cent.
Records show the properties were amassed over a 24 year period by automotive engineers Alison Scoullar and Vincent Messina who created the Aurora V8 Ultrabike.
Two of the properties are leased, with one potentially occupied until December 2029.
Colliers agents Andrew Ryan and Alex Browne, did the deal but declined to comment on the vendors.
Mr Browne said it was a “landbanking” move for the buyer.
Meanwhile, on the border with Fitzroy, residential developer Outline Projects has bought the Copacabana nightclub at 131-143 Smith Street for more than $11 million.
Records show Outline Acquisitions, controlled by former Hamton project manager Peter Forsyth, slapped a caveat on the 1206 sq m site in August.
Miles Real Estate agents Paul Evans and Tim Mitchell did the deal but declined to speak about details.
Tumbleweeds may be rolling through the city’s streets but some businesses are looking a long way ahead.
Freechoice Tobacconist is moving out of Flinders Street Station after more than 40 years and into the 38 sq m shop at the foot of Bible House on the corner of Flinders Lane and Scott Alley.
The lane will be a busy entry point to the new Town Hall Station, part of the Metro Tunnel project, with thousands of commuters rushing past the new shop’s doors. One day.
CBRE agents Tan Thach and Zelman Ainsworth did the deal at nearly $3000 a sq m – a similar price to the 2018-2019 pre-COVID market.
Mr Thach said the pandemic had accelerated the pace of change in the CBD.
“Landlords need to identify the next best use for their spaces and plan for one or two years ahead,” he said.
A New Zealand-based investor has splashed $7.1 million on a powdered milk factory on Vaughtan’s Wyndham Estate in Truganina.
The buyer conducted a video walk-through of the 8250 sq m premises before sealing the deal on a 5.75 per cent yield, according to Dawkins Occhiuto agent Chris Jones, who negotiated the expressions of interest deal with Walter Occhiuto.
“This is not the first time and it certainly won’t be the last time that we see purchasers taking advantage of a technology which has proven to be extraordinarily good at showcasing industrial properties,” Mr Jones said.
The dry blending and milk powder factory at 33-39 Jessica Way is on a 5000 sq m site and leased to Australian Dairy Goods’ Dairy Best Victoria.
The tenant pays just over $400,000 a year for the factory and is two years into a six year lease.
Nicole Lindsay is a property reporter at The Age.