Investor pays $2.27 million for Australia Post-occupied Hampton retail building

A Melbourne based investor has paid $2.27 million on a 4.4% yield for 440 Hampton Street, Hampton.

The securely leased retail asset comprises a 180 square metre ground floor component of a three storey building, on a 180 square metre site zoned Commercial 1 with 10 metres frontage to Hampton Street and three car spaces on title located in Melbourne’s south-eastern Bayside.

According to selling agents, Teska Carson directors, George Takis and Michael Ludski, four bidders from a strong auction crowd pushed the price to more than $170,000 above the vendor’s reserve.

The property was sold subject to a brand new five year lease to Australia Post at an annual rental of $100,000 with 3.2% annual increases.

Ludski said the area had seen significant growth in recent years with a number of medium density residential and commercial developments transforming the precinct.

"What has been an upsurge in this area’s popularity, with its easy access to Melbourne’s CBD via major arterial routes, and the beach, has driven the development of new, high-profile, residential and commercial projects that have further enhanced a much sought after destination,’’ Ludski added.