Footscray commercial freehold building sells for $800,000 above reserve price

Strong competition for a commercial freehold building located within the Footscray Activity Centre has sold for $800,000 above the reserve price.

Four bidders chased the property, at 202-208 Nicholson Street and 37 Albert Street, before it fell under the auctioneers hammer for $5.8 million.

The property encompasses a large land site of about 2,639 square metres with dual 24 metre- plus frontages to Nicholson and Albert Streets.

It features a two-storey commercial office freehold of about 2,706 square metres which includes four ground floor retail showrooms and first floor commercial office accommodation. The property is leased to established tenants with an estimated net rental of $490,000 per annum, which reflected an initial yield of 8.5% to the purchaser.

Among the tenants are Parliament of Victoria (Marsha Thompson MP), Carers Association of Victoria Incorporated, Choice Family Day Car Services, and Haange Family Day Care.

Fitzroys agents James Gregson and David Bourke handled the campaign. Mr Gregson said the property’s location within the Footscray Activity Centre, close to Victoria University, Grocon’s McNabb development and Footscray Railway Station, which was undergoing development, was a major factor in the successful outcome. “We are witnessing greater interest across these inner western markets from investors and developers seeking to get in early and seize these unique opportunities,” he said.