Investment property in Melbourne's Hawthorn expected to fetch more than $1.6 million

A mixed use investment property with further development potential in Melbourne’s inner east suburb of Hawthorn is expected to fetch more than $1.6 million at auction.

Located at 81-83 Church Street, the 300 square metre property on the corner of Brook Crescent comprises a two-level brick building including a ground floor café and a first floor, three bedroom apartment.

Situated in the heart of Hawthorn, Commercial 1 zoned site has been listed through Teska Carson’s Matthew Feld.

The auction is on November 20.

The property will be sold subject to two leases -- a five-year for the ground floor café and a monthly lease for the first floor residence -- for a total annual rental of $80,151.

He said the property presented substantial development potential subject to council approval in a popular suburb. It had a strong holding income and potential for capital growth.

"As such this property offers options for investors, developers and owner-occupiers in a very accessible and desirable location within the leafy inner eastern suburbs,’’ Feld said.

He said the area, only five kilometres from the CBD, had seen high-end residential and commercial developments in recent years and various other projects are under construction or in the planning stages.