One of Australia’s first Taco Bill restaurants hits market
The home of one of Australia’s first Taco Bill restaurants is on the market, with the iconic dining destination offering a level of affordability rarely seen in Melbourne’s upmarket inner-east.
Located at bustling Camberwell Junction and occupied by the Mexican food giant since 1981, the retail building at 465 Riversdale Road comes with a secure five-year lease to Taco Bill with an option to extend to 2030.
With price expectations set at around $1 million, Burgess Rawson agent Matthew Wright, who is marketing the asset with Raoul Holderhead, Zomart He and Kelemen Commercial’s Rudy Kelemen, said property in the traditionally tightly-held area almost never came so cheap.
“The average house price in the Hawthorn and Camberwell area is well over $2 million, so if you can get an investment for around $1 million, it’s very attractive,” Mr Wright said.
“It’s an affordable, entry-level investment with a national brand attached for 40 years, which is very rare.”
Returning $42,758.84 plus GST in annual rent, the lease includes guaranteed rental growth through 3% compounding annual rent increases, along with an attractive net lease structure, with Taco Bill paying all usual outgoings according to the lease.
Mr Wright said the property’s future value could be in redeveloping the 193sqm site, with a number of surrounding buildings already undergoing a transformation.
“It certainly does have some development potential, in the future. The location is the key, being at Camberwell Junction.”
“It’s Commercial Zone 1 so there are a few things you can put on there under that use.
Next door there are apartments, so there’s that precedent, and it has R.O.W and car parking on the title also, so the ability to extend and have rear access and apartments could be where its future lies, subject to council approvals.”
The shop at 365 Riversdale Road, Hawthorn East will be offered for sale at Burgess Rawson’s Investment Portfolio Auction at Crown Casino from 10.30am AEST on Wednesday, May 12.