Armadale apartment development site sells for $6.15 million

A High Street, Armadale retail property has sold for $6.15 million to an apartment developer. The developer paid a high land rate of $14,500 per sqm. It is single storey at the front of the 425sqm site set in the heart of the popular strip. There is a two storey rear space. Zoned Commercial 1, it has almost 14 metres frontage between Mercer and Huntingtower roads, within walking distance to Armadale Station. It has been occupied by longstanding tenant Armadale Antique Centre at 1147-1151 High Street whose lease expires 31 July next year, returning $215,120 per annum plus GST. It last sold at $650,000 in 1993, according to CoreLogic. It was sold at a 2.7% yield through Fitzroys’ Chris Kombi and Chris James who received 14 expressions of interest from local and interstate investors, land-bankers, developers and owner-occupiers. “High-end boutiques, discretionary retailers and specialist food purveyors have been attracted to the High Street’s affluent and established catchment, and new developments are serving to further activate the strip, attracting commercial and retail tenants, as well as downsizers wanting to stay in the locale,” Kombi said. The strip has seen famed Sydney butcher Victor Churchill make its long-awaited Melbourne debut within the Alara development in the circa-1910 State Savings Bank building, which will introduce 19 high-end apartments in the immediate vicinity. Further developments such as Chronicle, The Carlile, and at 969-975 High Street will also be built on High Street. According to Fitzroys’ Walk the Strip report, High Street, Armadale retained single-digit retail vacancies in 2021. “High Street, Armadale is widely recognised as one of Melbourne’s most successful retail strips, boasting some of Melbourne’s best shopping boutiques, a growing specialist food offering and quality cafés, wine bars and restaurants, and located within one of the city’s most prized catchments,” James said. There was another High Street development site sale at $7.25 million in October. The property was sold with a planning permit for a Ewert Leaf designed, four level luxury residential project, comprising 14 residences including eight x three bedroom apartments and six x two bedroom apartments. The 872-874 High Street property had a combined 1126 square metres.