Pellicano family sells their Bentleigh property

A Bentleigh property owned by the Pellicano family for 30 years has been sold.

The property, with a permit for 52 apartments sold to a local Melbourne developer for $9.75 million.

CBRE agent Mark Wizel, who had marketed the property, said it had presented a "fantastic packaged opportunity to the market.’’ 

The 277-279 Centre Road property comprises a 1564 square metre Commercial 1 zoned allotment with a double storey commercial building of 1276 square metres offering a prominent retail strip frontage of over 33 metres with rear lane access to 36 car spaces.

The property, which is located within the coveted McKinnon Secondary College zone and across the road from an Aldi supermarket, is currently 90 per cent leased to nine tenants at a passing income of $267,000 per annum.  

The approved permit allows for a Rothelowman designed, mix-used development with 52 apartments and two significant ground floor retail spaces over seven levels. 

Wizel said demand for housing in Bentleigh had driven prices past the Melbourne suburban average with a 21 per cent uplift in value over the last 18 months to register a median house price of just over $1.6 million. 

The property according to CBRE National Director Investments Mark Wizel, who brokered the deal with Julian White and Nathan Mufale, attracted a strong field of local, interstate and Asian purchasers.

Wizel said the permit appeared to unlock the best-use potential of the property although the 10-year average occupancy per tenant illustrated the strong and ongoing demand for commercial leases on the strip.