Tiny laneway coffee shop in Capitol Arcade to go under the hammer
A retail listing in Melbourne’s iconic Capitol Arcade featuring direct access to a street art-filled laneway is set to go under the hammer next month, with price expectations of around $1 million.
With its compact 29 square metre footprint, a secure lease and a price guide that undercuts the median inner-Melbourne house price ($1.081 million at the end of the March quarter), the property is being pitched as an ideal first-time investment.
“Opportunities of this kind in the heart of the Melbourne CBD are rare and as such, we are anticipating a hot contest when this property goes live this month,” said Colliers International’s Chris Ling, who is marketing the listing alongside Oliver Hay and Anthony Kirwan.
“The property is expected to attract wide-ranging interest from a diverse group of buyers, both local and offshore, as well as first-time commercial entrants due to its competitive price point.”
Shop 3, 115 Swanston Street is leased to hospitality provider 30ML Coffee on a seven-year term, providing a net annual income of approximately $56,388 with fixed annual increases.
Domain Group records indicate the strata shop was purchased by Cartisano Properties Pty. Ltd. for $800,000 in 2007.
The property has dual access via the Capitol Arcade and Presgrave Place – a popular destination with visitors to the city.
“Presgrave Place is known for its unique street art and quirky sculptures, and has established itself as a Melbourne Walking Tour staple tourist destination,” Mr Kirwan said.
“This property is conveniently located in the heart of the Melbourne CBD’s most lively and exciting laneway network, providing immediate access to some of the city’s most popular cafes, restaurants, boutique retailers and landmark destinations including St. Collins Lane, the Regent Theatre, The Block Arcade and The Walk Arcade, as well as Bourke Street Mall.”
The Capitol Arcade, located across from Melbourne’s Town Hall, was named for the Capitol Theatre on Swanston Street, which was designed by Walter Burley Griffin and his wife Marion Mahony Griffin and opened in 1924.
The theatre was later converted to a single-level cinema and the shopping arcade, where 30ML Coffee current operates, in 1965.
“The location attracts high levels of pedestrian traffic from tourists and workers from surrounding commercial buildings and retailers, with more than 40,000 pedestrians walking past this intersection daily,” Mr Kirwan said.
The Capitol Theatre recently underwent an 18-month-long restoration, overseen by Six Degrees architects and Hutchinson Builders, at a cost of more than $20 million. It is now set to be used by owner RMIT as a teaching facility as well as a space for public events.
Shop 3, 115 Swanston Street will be auctioned on August 15.
