Lygon Street vacant corner shop passed in at auction

The auction of a much-hyped vacant Lygon Street shopfront and upstairs residence failed to live up to expectation with the property passed in today.

There were just two bidders at the on-site auction and just one genuine bid of $1.65 million.

The 70 Lygon Street, Brunswick East, property was passed in on a vendor bid of $1.8 million.

Colliers International agents Tom Noonan and Jeremy Gruzewski had expected the property to sell for in excess of $2 million in the tightly held retail and cafe strip.

They are currently working through offers with Noonan expecting to announce a sale early next week.

Expectations were high that the property would attract a premium with 100 enquiries received prior to auction and around 15 contracts issued.

In October last year, the historic Lygon Street premises of Donati’s Fine Meats sold for $2.89 million at auction, with a private investor paying nearly $1.4 million above pre-auction expectations – a yield of just 2.3% amid “emotionally-driven” bidding.

Gruzewski and Noonan also marketed the Lygon Street butchery last year.

The 70 Lygon Street property stands at on the corner of Lygon and St Phillip Streets. It comprises 226 square metres of space, of which 75 square metres is ground floor retail on a site measuring 230 square metres.

The second floor has a three-bedroom residence.