Hawthorn Retail Investment | $1.13M | Net Yield: 5.91% | Established Hospitality Tenant

Positioned in the heart of one of Melbourne’s most tightly held inner-eastern precincts, this Hawthorn retail investment combines a high-exposure location, established hospitality tenant and secure long-term income profile.

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Located directly opposite Swinburne University and moments from the Glenferrie Road retail precinct, the property benefits from consistent pedestrian activity generated by students, local residents, professionals and visitors to the surrounding hospitality and retail amenity.

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The property comprises approximately 100 sqm of internal floor area together with exclusive use of an additional 80 sqm courtyard, creating a versatile indoor-outdoor hospitality offering. Its distinctive Federation Queen Anne façade provides strong street presence, while the extensively upgraded interior incorporates a commercial kitchen, polished concrete flooring and dedicated courtyard dining.

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The asset is fully leased to The Resistance Burgers, Bar & Cafe, an established hospitality operator that has been in business since 2015 and has occupied the property since 2023. The tenant has invested significantly in the premises and operates across café, lunch, dinner and evening trade, demonstrating a strong commitment to the location.

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The current lease generates gross annual income of $73,548 plus GST, with the tenant responsible for recoverable outgoings under a net lease structure. After non-recoverable management fees and land tax, the property generates approximately $67,828 in net annual income, representing a net yield of approximately 6.00% on the $1.13 million acquisition price.

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The lease commenced in September 2023 and provides an initial five-year term together with a further five-year option. Annual rental growth of 4% provides a structured mechanism for increasing income throughout the investment period.

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The tenant is further supported by an established local following and strong digital presence, including more than 6,500 Instagram followers and a 4.6-star Google rating from over 1,000 reviews.

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Beyond the existing tenancy, the property’s Commercial 1 Zone provides flexibility for a range of potential future uses, including retail, hospitality and selected commercial or medical applications, subject to the relevant approvals.

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Hawthorn remains one of Melbourne’s most established inner-eastern markets, supported by affluent surrounding demographics, major education infrastructure, extensive public transport and a highly active retail and hospitality economy. Swinburne University provides a substantial daily population within the immediate precinct, while nearby Glenferrie Road acts as one of the inner east’s key retail and lifestyle destinations.

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With secure income, fixed annual rental growth, an established tenant and a tightly held inner-Melbourne position, this acquisition provides exposure to a high-quality retail asset with both immediate income and longer-term underlying property fundamentals.