Highton Village freehold offers development upside
A rare opportunity to acquire a freehold property within the Highton Village shopping centre offers the chance to secure an $80,000 annual income and reap the development potential down the track.
The 204sq m property at 79 Barrabool Rd, Highton, offers a prime location within the popular shopping village.
It’s the first time this property is available to the market since the original part of the building was erected facing the Belle Vue Arcade in the 1960s, selling agent James Wilson said.
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The florist on the arcade has been a tenant for more than 25 years, with a prominent real estate agency also holding a long-term lease on the prominent part of the building facing Barrabool Rd.
Mr Wilson said the leases are due to renewal in August 2025, with both tenants holding a further five year option.
This gives buyers a strong income over a good period of time, enough to consider the excellent development potential.
The Highton Village urban design framework sets a preferred three-storey building height to Barrabool Rd with setbacks.
“What the property offers is a good, solid going concern that isn’t encumbered by an owners corporation that in time has development potential,” Mr Wilson said.
“We’ve been quoting to the market figures in the vicinity of $1.65m to $1.8m
“We’ve had good inquiries throughout the campaign from some local investors and some out of town investors.”
The former Commonwealth Bank building at 73 Barrabool Rd was the last property in the centre to sell publicly, when it sold in 2021 for $3.685m.
“They have been traditionally well held like this,” Mr Wilson said.
“There’s very little that’s transacted over time, which the buyer market is recognising.
“There’s been a couple of private transactions through time, but not a lot that has been offered to the public,” he said.
The property goes to auction in Belle Vue Arcade on July 12.