Commercial investment 232-234 Chapel Street & 2-2A Cecil Place Prahran sold through an online auction by Fitzroys’ Mark Talbot and David Bourke for $3.84 million, at a 2.3% yield on the passing rental.

Bourke oversaw the online auction from his home following a campaign that generated over 100 enquiries. The estate sale marked the first time the property had been offered to the market in 50 years.

Zoned Commercial 1, the 285sqm corner site comprises two Chapel Street shops and a separate first floor office, and a two-level studio office fronting Cecil Place for a 440sqm total building area. The short-term leases provide scope to redevelop, occupy and reposition.

Talbot said the initial on-site auction campaign pushed back and switched from on-site to online, and that the result is the latest evidence that the online auction method works.

“High-quality assets have been in short supply on the market over the past 18 months, and there is a huge volume of capital waiting to be deployed across the market. Buyers simply aren’t being deterred by the online auction process, or a change in sales method during a campaign,” he said.

“The transparency of the auction process is maintained, while significant results achieved recently have encourage vendors to proceed with their campaigns.

“Together with technological and logistical advances seen over the past 18 months alone, all parties are much more confident in proceeding with auctions and achieving a strong result.”

Bourke said the new owner intends to use the site as a value-add opportunity, undertaking refurbishments and redevelopment of parts of the property.

 “The huge enquiry from occupiers and developers showed a huge confidence in the future of Chapel Street, which is seeing a generational development and renewal phase in its immediate surrounds.

Major projects include the $1.4 billion redevelopment of the Jam factory cinema, retail and hospitality complex by Newmark Capital, Gurner and Qualitas that will create new residential, office and hotel components, while a stretch of properties on Toorak Road, including South Yarra Square and the Hotel Claremont, are set for refurbishment and repositioning, and Goldfields is developing a new office tower at 627 Chapel Street.

To request a sales analysis please contact either of the selling agents Fitzroys’ Mark Talbot and David Bourke via the below contact details.