Historic Brunswick East retail freehold competed for under the hammer

The historic host of Brunswick East's Carbone Custom Made Clothiers has changed hands for the first time in 40 years.

Fitzroys agents Mark Talbot, Tom Fisher and Ervin Niyaz sold the prominent 297 Lygon Street building under the hammer on behalf of the New South Wales-based Richardson family.

Talbot said the sale price reflected a remarkably tight 2.0% yield, and a land rate of $4,352 per sqm.

Eclipsing that of the recent sale of 368 Lygon Street, which had a height allowance of seven levels, while the Carbone site has a height limit of five levels and is subject to heritage overlay controls

Set on a 618 sqm site, 297 Lygon Street has a single-level interwar Greek Revival brick showroom and warehouse building of 596 sqm, with the front portion utilised as a retail space and the rear for handcrafting and tailoring.

It has 16.85m of frontage to Lygon Street with rear access from Ann, Albert. and Trafford Streets.

Talbot said, “we received more than 60 serious enquiries during the campaign from all buyer groups, leading to competition between several bidders at auction."

Carbone has a short-term lease until September 2020 that returns $75,712 per annum.

According to Talbot, the new owner is a land banker.

Constructed through the late 1920s, the building was once home to Perfection Knitting Mills and from 1949 until 1970, 297 Lygon Street was occupied by shirt manufacturer Dorrens.

Fisher said the property was offered with an attractive Commercial 1 zoning, and a design and development overlay that encourages development of up to 17m in height.