189 Balaclava Road

189 Balaclava Road is a two-level commercial freehold on a prominent corner in Caulfield North, around 9km south-east of the Melbourne CBD. Held for a value-add play: roughly 1,455m² of lettable area over two levels, on a 1,153m² site zoned Commercial 1, with on-site parking for 27 vehicles.

The building came with two established tenants and secure income. The plan is to grow that income and lengthen tenure. That means renegotiating for longer leases, refreshing the internal fit-out and the building's external presentation, and improving the day-to-day trading conditions for the businesses that operate from it.

Adding value

Two new income streams sit alongside the leasing work. Rooftop signage puts the corner's exposure to passing traffic to work, and a rooftop solar system offsets building outgoings and can be on-supplied to tenants. Together with the cosmetic upgrade and a longer weighted lease expiry, the target is to move the asset to a $10M value within twelve months on a 5.5% capitalisation rate.

The plan

• Two-level corner freehold, ~1,455m² building
• 1,153m² site, Commercial 1 Zone (C1Z)
• On-site parking for 27 vehicles
• Two established commercial tenants
• Renegotiate leases for longer tenure
• Refreshed internal fit-out
• Updated external cosmetics and signage
• Rooftop signage income
• Rooftop solar to offset outgoings and on-supply
• Better trading conditions for tenants