Celeb chef’s Biggie Smalls restaurant eats up suburb record

The home of celebrity chef Shane Delia’s hip hop inspired eatery Biggie Smalls has sold for $3.58 million, setting a new record for one of Melbourne’s hottest inner-city suburbs.

The single-fronted 267sqm retail building at 86 Smith St, Collingwood has been snapped up by a Chinese investor at a rate of $19,456 per sqm – a record

The record sale comes as local buyers and offshore investors are flocking to the precinct attracted by Collingwood’s speedy gentrification and promise of long-term tenants in the office and entertainment sectors.

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Agents Chris Kombi and Terence Yeh of Fitzroys say the sale is testament to the suburb officially emerging as a must-visit destination, as well as a sought after office precinct.

Biggie Smalls features hip hop inspired cuisine.

“The renewal of the inner north has seen a boom in trendy medium and high-density residential developments and warehouse-to-office conversion projects along and around Smith St, attracting more students and younger professionals and enhancing the precinct’s reputation as one of Melbourne’s leading eclectic retail, food and beverage, and nightlife offerings,” Yeh says.

The bottom level is leased long-term by the first Biggie Smalls venue – offering ’90s hip hop culture inspired casual food.

The ground and basement levels of the property both have leases on a seven-year deal with two seven-year options and the first floor office is subject to a secure tenancy of six years with options.

The upstairs office space above Biggie Smalls.

The sale of the newly renovated building offers a sharp 3.51% yield.

Yeh says other recent acquisitions in the area, including a 1000sqm-plus site taken on by the Tribe Hotels Group just metres away, demonstrates the suburb’s ongoing potential.

“Collingwood’s industrial roots have provided Smith St with unique long-term growth prospects, offering a substantial residential and office development pipeline whilst retaining much of its heritage and character,” he says.