Melbourne property leased to fitness chain sells for $1.65 million

A gymnasium/office space fully leased to a well-known fitness chain in Melbourne’s inner north retail strip of Brunswick has sold at auction for $1.65 million. well above the reserve price. 

The buyer was a Melbourne-based private investor who made the purchase for a tight yield of 3.68 percent. It was put on the market for the first time in 60 years.

The 41-43 Weston Street property comprises a two-level, 650 square metre building including a ground floor, a gymnasium and first floor offices spanning 140 square metres on a site zoned Industrial 3. It is opposite Barkly Square Shopping Centre.

The selling agents were Teska Carson's George Takis and Tom Maule.

The property is on a five-year lease to Doherty’s Gym at a current rental of $60,832 per annum net with 4 per cent annual increases, said a media release. It drew more than 100 enquiries, said Takis.

"Brunswick is one of Melbourne’s most popular retail strips with an array of fashion boutiques, cafes, bars and restaurants," said Takis.

"The precinct is further underpinned by the Barkly Square Shopping Centre with national retailers including Coles, Woolworths, Kmart, McDonalds and JB Hi-Fi.’’