Investor picks up supreme slice of Thomastown retail
Owned by the same family for nearly half a century, a Thomastown pizza shop has been snapped up by an investor.
The Essendon buyer was one of 10 hungry bidders who battled for the Mr Pizza shop at 263 High St, which sold under the hammer for a super supreme $745,000 on March 16.
Ray White’s Nicholas Cannarvo says the property is a landmark in the area and has been in the same family for about 50 years.
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‘‘The owners built the shop in the 1970s to run their Italian delicatessen,” he says.
The property has been leased to pizza businesses over the years, with Mr Pizza operating from the shop for the past 10 years.
About 100 people attended the auction to watch the bidders drive up the selling price $15,000 beyond its $730,000 reserve.
“There was a real buzz around the auction, with things kicking off at $450,000 and 32 bids taking the sale price all the way up to $745,000,” Cannarvo says.
“Potential buyers really appreciated the opportunity on offer here.”
About 100 people attended the auction at 263 High St, Thomastown.
The 180sqm building on a 201sqm block comes with a longstanding tenant and Commercial 1 zoning.
It generated 65 inquiries, from mainly investors, across Melbourne.
“Mr Pizza is a well-known shop in Thomastown,” Cannarvo says.
“It has a lot going for it, with its main road position offering great exposure, ample off-street parking and rear access.”
It also includes a lease ending in 2027, an annual return of $33,840 with 3% annual rent increase, and all outgoings paid by the tenant.
“All these factors made it an ideal property for investment,” Cannarvo says.
Ray White’s Tony Alessandrino says the food outlet has gained popularity over the years.
“Everyone knows the shop and it has a good name,” he says.
“This is an excellent result in today’s market.”
The buyer, who is adding to his investment portfolio, will continue to lease the property to Mr Pizza, Cannarvo adds.
