Mornington shop owner’s multimillion-dollar windfall
A Mornington shop owner has been gifted a windfall after holding onto the small lot for nearly four decades.
A buyer has splashed $2.6 million for 69 Main St, which is on 280sqm and currently leased to national retailer Ghanda Clothing.
The vendor had paid $86,460 for it back in 1980, delivering a huge price gain of more than $2.5 million over the period, CoreLogic figures show.
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“The vendor had owned the property for a long time and it has paid off,” CBRE senior manager Rorey James says.
The sale comes less than two years after the buyer had sold another property along Main St, only to return on February 27 to snap up 69 Main St.
A large and curious crowd was present for the auction.
The weekday auction saw the property sail $100,000 above the reserve and drew two other bidders: an owner-occupier and a developer.
The auction was held on market day along the street with plenty of stalls open and a crowd of 100 onlookers, James says.
“This was a yield of 3.7% and just above $18,000 per square metre for the building,” he says.
“The investor hopes to add value to the block by perhaps creating another retail space at the rear.”
The property with Commercial 1 zoning has an annual net income just under $100,000 and comes with rear access and parking for six or more cars.
The lot has prime frontage with plenty of parking at the rear.
It is leased until June 2021 to Ghanda Clothing, which has 51 stores nationwide, and the property has good street frontage and backs onto a large council car park.
James notes properties along the long stretch of road are tightly held with just a couple of sales a year.
Last October, CBRE sold a 364sqm block at 100-102 Main St for $4.4 million. The property has a long lease to ANZ Bank.
Main St is popular with a wide range of shops, boutiques, cafes, restaurants and offices.
This article from Leader Newspapers originally appeared as “Rags to riches on Mornington’s Main St”.
