Melbourne's hotel and hospitality sector is experiencing a surge in demand and capturing the attention of astute property investors.

State of Grace in Melbourne’s CBD and Fargo & Co in Richmond are now on the market through Stonebridge Property Group, representing some of the best investments available in this booming sector.

Both properties are fully leased to Australian Venue Co. (AVC), one of the nation’s leading hospitality operators, making these investments secure and highly lucrative.

State of Grace EOI closes 10 October 2024 and Fargo & Co EOI closes 18 September 2024. 

State of Grace - 27-31 King Street, Melbourne:

Situated in the heart of Melbourne’s bustling CBD, State of Grace at 27-31 King Street is more than just a building; it offers a rich history and dynamic nightlife. This landmark property attracts a diverse crowd, from professionals unwinding after work to tourists seeking the city’s best experiences.

The property boasts an impressive net lettable area of 1,946 square metres with a 15.5-metre frontage to King Street, offering unparalleled visibility and accessibility. Its strategic location, near Crown Casino, Southern Cross Station, and Marvel Stadium, ensures a constant flow of patrons, making it a vital hub for social and commercial activities.

The anchor tenant, Australian Venue Co., has renewed a 10-year lease, reinforcing their commitment to this prime location. AVC operates over 200 venues nationwide, generating an annual turnover exceeding $1 billion. This robust tenant profile guarantees a stable income stream, adding significant value to the property, making it an ideal investment in Melbourne’s competitive real estate market.

Julian White said investors will appreciate the property’s potential for future development, subject to planning approval. Its central location, coupled with ongoing urban development in the surrounding area, positions State of Grace as a key asset for long-term growth.

Max Warren added that whether for immediate returns or as a landbanking opportunity, this property offers flexibility and security, appealing to a wide range of investment strategies.

Expressions of Interest for 27-31 King Street, Melbourne, close on Thursday, 10th October 2024, at 2pm (AEST).

Fargo & Co - 214-216 Swan Street, Richmond:

Located just a short distance from the Melbourne CBD, Fargo & Co at 214-216 Swan Street, Richmond, is another attractive investment opportunity. Situated in one of Melbourne’s most recognised hospitality hubs, this property embodies the dynamic spirit of Richmond, known for its eclectic mix of retail, dining, and entertainment options.

Fargo & Co is a meticulously refurbished, multi-level hospitality venue that has become a staple in Richmond’s vibrant social scene. The property offers 542 square metres of versatile space, designed to accommodate a variety of events and dining experiences. The venue is licensed for 450 patrons, with late-night trading hours extending to 1:00am, catering to Richmond’s bustling nightlife, commented Rorey James. 

Australian Venue Co. is the anchor tenant, further enhancing the property’s investment appeal. With a vendor-favored 10-year net lease and fixed annual increases, investors are assured of a stable and growing income stream.

Rorey James said the property’s Commercial 1 zoning, combined with its 50-metre triple street frontage, provides high levels of exposure and multiple points of entry, enhancing its retail potential.

Rory James added, the location is another key asset with the property just 50 metres from East Richmond Train Station and 700 metres from Richmond Train Station.

Nic Hage said its proximity to major sporting venues like the Melbourne Cricket Ground, Olympic Park, and AAMI Park ensures a steady influx of visitors, boosting the property’s commercial prospects.

This property generates a net annual income of $500,000 plus GST, excluding Land Tax, making it a highly attractive investment for those seeking reliable returns.

The Expressions of Interest for 214-216 Swan Street, Richmond, close on Wednesday, 18th September 2024, at 3:00pm (AEST).

Both State of Grace and Fargo & Co are leased to Australian Venue Co., a hospitality giant with a proven track record. AVC’s extensive network of over 200 venues across Australia and its annual revenue of over $1.1 billion make it a solid tenant, providing investors with peace of mind and assured returns. The company’s commitment to these locations, evidenced by their long-term leases, further enhances the security and attractiveness of these investments.

State of Grace - 27-31 King Street, Melbourne for sale by Stonebridge Property Group agents Julian White, Dylan Kilner and Max Warren.

Fargo & Co - 214-216 Swan Street, Richmond for sale by Stonebridge Property Group agents Rorey James, Nic Hage and Kevin Tong汤聪瑜.