$1m possible for ‘The Block’ cafe
A South Yarra cafe made famous when it was created as part of Channel 9 series The Block is on the market, with expectations it could fetch more than $1 million.
The cafe, which was built on the ground floor of the old Hotel Saville – dubbed “the Blocktagon” as part of the series in 2015 – will be auctioned on June 28, about two years after filming wrapped up.
The 133sqm space on Commercial Rd, near the corner of busy Punt Rd, is operated as trendy eatery Mr. Zen, and also features a 195sqm landscaped outdoor terrace.
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The hotel sold in 2014 for more than $7 million before featuring on the reality TV renovation show, with the upper floors transformed into luxury apartments and the bottom floor turned into a commercial space.
The property is being marketed by Mark Smedley and Marcus Klinge from Dixon Kestles, and has three years remaining on its current lease, with a further two four-year options.
Klinge says the cafe has already attracted intense interest due to its ties to The Block and could sell for “greater than $900,000”. But he says that it is the quality of the investment that will ultimately determine its popularity among investors.
“It is a bit of novelty, but at the end of the day it’s an investment property, and any astute investor is going to be looking at the investment fundamental,” he says.
“I wouldn’t say anyone would potentially got out of their way to buy it because of their association with The Block.”
Klinge says the property also benefits from substantial depreciation benefits. Rent on the space is currently at $47,380, with 3% annual increases.