Thornbury cafe sale continues boom for High St strip
A Thornbury cafe has proved as popular on the commercial property market as it is for weekend pastries, selling on a sharp yield to a local investor.
The inner city Melbourne property at 709 High St has been owned by the same family for 44 years, and for the last five has operated as French eatery Le Cafe Flo, earning a major following for its tasty treats.
Five bidders competed for the property at auction, with two parties phoning in to make a play for it before the local buyer struck the winning bid at $1.3 million.
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Longtime owners Pasquale and Pasqualina Tacconelli began their journey in the building in 1972 when they bought an existing milk bar business within the premises in 1972. Their son, Tony, and the family lived in the property at times, maintaining a long association with it over the years, with multiple and evolving businesses operating from within.
More recently, the 158sqm site has been home to Le Cafe Flo and an Indian-influenced ice cream maker, which operates from the rear.
Fitzroys agents Chris James, Ervin Niyaz and Terence Yeh sold the property, with James saying it continued strong trend of commercial activity in the Thornbury area.
“The ongoing gentrification of this corridor has spurred the development of multiple medium and high-density dwellings, creating excellent rental growth potential for the property and generating further demand for retail and food and beverage operators along the strips,” he says.
Thornbury’s High St has proved a hit with investors this year, with a shop and residence at number 740 selling on a 3% yield, while in recent months number 785 traded on a very tight 2.4% yield.