A RARE commercial property in Newtown’s Pakington St is poised to set a new price record for the premium retail strip.
The freehold premises at 313 Pakington St is tipped to spark strong interest from investors and developers when it goes to auction on February 14.
It presents a chance to acquire a prime corner site of 775sqm in the tightly-held river end shopping precinct.
Price hopes are $2.3 million to $2.5 million for the property, which includes a heritage building and another neighbouring building.
It comes with long-term leases to two longstanding tenants, Steampocket Pizzeria and Cafe and Pamper Medical Skin Clinic.
The listing comes hot on the heels of a record $2.29 million sale in the strip, for a nearby retail premises at 322 Pakington St late last year.
Buxton agent Ben Riddle, who is joint listing agent with Darcy Jarman, Geelong West agent Simon Jarman, said commercial opportunities like the blue chip location were few and far between.
“Obviously it’s rare in that pocket, it’s hard to get a big site of just under 800sqm,” Mr Riddle said.
He said with two buildings and three street frontages, there was scope to further develop the site, subject to council approval.
“Newtown is more tightly held (than the Geelong West end of Pakington St) because there is less development,” Mr Riddle said.
It’s the highest priced suburb in Geelong and Pakington St is a world famous strip.
“And the good thing about having two tenants is that is spreads your risk.”
The property has an annual rental income of $109,923(net) and comes with five rear carparking spaces, accessed off Huntingdon St.
The buildings include multiple reception rooms, treatment rooms, sitting rooms, a kitchen, dining room and outdoor seating/dining area.
Mr Jarman said the fact both the tenants were established businesses added to the appeal for investors keen on a walk-up start.
“It has already attracted interest both locally and from Melbourne from buyers who want to get into the prime location with quality tenants,” he said.
A clutch of sales in recent years have highlighted the river end shopping strip’s strong commercial property sector.
The quality of the tenants and the location sparked a bidding war for nearby 322 Pakington St, a 411sqm property home to Newtown’s pharmacy and a fashion boutique, auctioned by Darcy Jarman in October.
A Geelong investor paid a record price to secure the site ahead of four other buyers.
Demand is also strong for commercial properties in Pakington St’s Geelong West shopping strip where an investor paid $3.21 million last August for 196-198 Pakington St. It had been home to Murphy’s Newsagency.
The auction of 313 Pakington St, Newtown will be on February 14 at noon.