Commercial hammer prices: Puckle Street restaurant plus upstairs apartment sells for $800,000 on 5% yield

A private investor has paid $800,000 at auction for a two-storey shopfront and residence on Puckle Street, the popular retail strip in Moonee Ponds in Melbourne’s north-west.

It also features a courtyard and two rear car spaces.

The property (pictured above) was marketed by Campbell Dickinson of Rendina Real Estate Kensington, who tells Property Observer he received “good interest” from around 20 parties over the four weeks leading into the auction.

The ground floor is leased to Yim Yam Thai Laos Restaurant on a three-year lease with a three-year renewal option started this year in January.

Yim Yam Thai Laos is paying $24,500 per annum plus GST and outgoings.

The three-bedroom apartment above is currently leased on a month to month, equating to $16,000 per annum.

Combined, the two spaces provide monthly income of around $3,375 per month, a gross yield of around 5% when fully leased.

Dickinson says the investor might look to develop the property down the track.

According to research by Knight Frank, Puckle Street has one of the lowest vacancy rates of the suburban retail strips, with vacancies rising just 0.5% to 4.2% over the past two years.

Realcommercial.com.au lists five shops available for rent on Puckle Street.

For more commercial property sales, visit our dedicated Commercial hammer prices section on the website