Lune Croissanterie: Cult-status bakery’s flagship Fitzroy warehouse up for sale
The Fitzroy warehouse site of iconic Melbourne croissanterie, Lune, is up for grabs.
Property investors with a sweet tooth now have the chance for world-famous croissanterie, Lune to be their tenant.
The iconic Melbourne bakery’s flagship store, in a converted warehouse in the backstreets of Fitzroy, has hit the market with a $3.6m asking price.
Nestled just off Brunswick St, the 403sq m allotment on the corner of Rose and Young Streets has been occupied by the patisserie for nearly 10 years, and is known among locals for its lengthy queues of customers lining the streets each morning for Lune’s cult-status croissants.
RELATED: Witches in Britches finds new king of the castle with $7m+ sale
Lune Croissanterie, Cameron Reid: Co-owner of world-famous pastry business sells sweet Coburg home
Fitzroy warehouse conversion turning heads with cool design
Lune’s world-famous croissants have gained a cult-like status since launching in 2012.
But the converted warehouse bakery and cafe is being eyed off by property developers.
The current lease is in place for another five years.
While it’s not going anywhere anytime soon, developers are eyeing off the prized 119 Rose St corner spot for a future apartment development once the lease is up.
Lune has less than five years remaining on its current lease, with the option to extend for a further seven years thereafter, but the flagship site of the world-famous croissanterie could cease to exist by 2034.
Nelson Alexander Commercial Fitzroy partner Kristian Lunardi said his agency had been “inundated with inquiries” from both local and international investors and developers, who saw the value in a corner warehouse site in the popular inner-city suburb.
“It’s so hard to find a corner warehouse in Fitzroy, whether leased or unleased, so a lot of the feedback we’ve had from these land bankers is that they’re wanting to get into that market, and also noting the lack of supply,” Mr Lunardi said.
He added that the vendors originally purchased the property as a development site and had a planning permit in place to build 20 apartments, which was “put on the back burner” once Lune signed their lease.
The Rose St site is known for having queues of customers lining the streets for a croissant.
It produces a rental income of $107,000 per annum.
The space could potentially be turned into an apartment development in future years.
Those plans have since expired, but are available upon request to interested buyers.
The property has a rental income of $107,000 per annum, with 4 per cent annual increases also in place.
Lune was founded by ex-Formula 1 aerodynamicist Kate Reid in 2012 as a tiny, hole-in-the-wall shop in Elwood, before she joined forces with her brother Cameron and prolific Melbourne restaurateur Nathan Toleman to open the Fitzroy store.
It has since gained a cult-like following across the nation, with stores also found in Armadale and the CBD, as well as two in Brisbane and a Sydney outpost set to arrive later this year.
Lune even gained international attention when the New York Times touted its croissants as some of the best in the world.
The commercial landholding is being auctioned at 1pm on May 18.
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Kew East: Heritage home unoccupied for 25 years hits market for first time in a century
Lower Plenty property a sporting paradise with multiple putting greens, basketball court
emily.holgate@news.com.au
