Written by Prateek Chatterjee, Property Observer
An iconic Melbourne CBD building which was first traded in 1965 for $57,000 is back on the market with an enviable, fully-leased, tenancy profile boasting two tenants who have been on site for an average 30 years.
The 185-187 Lonsdale Street property is for private sale with an asking price of $9.9 million.
The property is at the corner of Waratah Place, directly opposite QV and within both Melbourne’s Chinatown and Greek precincts — the key to the longevity of the tenants, according to Nick Peden and Clinton Baxter of Savills, who are marketing the property with Burgess Rawson’s Jamie Perlinger and Nick Breheny.
One of the tenants, Greek cake house International Cakes, has been a tenant at the building for 46 years – one of the longest running retail-strip tenancies in the city.
“This is a really interesting building not just because of the beautiful architecture but because its standing in two of the CBD’s most iconic cross-cultural precincts – Chinatown and the Greek precinct – and of course the two tenants whose exceptionally long leases are testament to the value of the right location,” said Peden.
“Chinatown is one of Melbourne’s most vibrant and popular 24-hour precincts, while the Greek precinct serves a Greek population which is the largest in the world outside of Greece.’’
Perlinger said the three level, 550 square metre, building remained in excellent condition and stands on a 188 square metre site with a combined 30 metres frontage to Lonsdale Street and Waratah Place.
International Cakes is on a current five-year lease with two further extensions at a net rental of $240,000 per annum, while WahWah Lounge, which has been in occupation for 15 years, has a three-year lease with two three-year options at a net rental of $114,545 per annum.
International Cakes has an Australia wide reputation for producing a wide range of Greek style cakes, pastries and tarts including pasteli, nougat, halva, and loukimi.