MARKET WRAP
SALES
Moorabbin
Seven bidders from a 120 strong crowd have pushed the price of 90-92 Cochranes Road, a two-level 3300-square-metre office and warehouse, to $4.01 million – believed to be a record price of $820 a square metre and more than 25 per cent above the vendor's reserve. Teska Carson's George Takis and Barry Novy in conjunction with Cameron Industrial Commercial, sold the property. It was the first time it was on the market in 40 years with owner occupiers, investors and developers showing interest, Mr Takis said.
Doncaster East
Another well-attended auction in Doncaster's Tunstall Square saw 10 bidders battle it out in front of 200 people to grab 16 Tunstall Square for $2.85 million on a tight 2.9 per cent yield. "We made a concerted effort targeting local private investors who were concentrating on long-term passive investments before yield," Gorman Commercial's Stephen Gorman said. "These buyers are not dependant on local financiers and they have the ability to be far more aggressive than others."
South Yarra
A contemporary South Yarra office floor has sold to major cinema chain Palace Cinemas for $3.5 million in an off-market transaction. Fitzroys agents Chris Kombi and Chris James negotiated the sale on behalf of South Yarra Corporate Centre. The 518 square metre office will become the group's new headquarters once they move from existing premises in Balwyn. The office forms part of a boutique four-level retail and office building and includes nine undercover car parks on title. Palace runs cinemas in Balwyn, Brighton and Westgarth, among other locations.
Richmond
A Victorian-era brick and timber-truss warehouse at 426 Burnley Street has sold off market for $1.86 million on a yield of 3.4 per cent. The building located just north of the Burnley Tunnel exit is leased to McCann's Antiques on rental of $63,810 per annum net with 4 per cent annual increases. It sold to a neighbouring business owner who intends to expand once the lease expires in 2020, said Ian Price from Dixon Kestles.
Epping
A brand new office/warehouse on a corner in the Alliance Business Park in Epping has been snapped up by an owner-occupier for $3.1 million plus GST. Colliers International's Marco Sandrin and Brent Glassford said the property, sold by Pro Tilt Constructions, was well positioned close to the new wholesale fruit and vegetable markets at Epping.
CBD
Two whole floor strata offices have sold in the Stamoulis Property Group's newest strata office development, 568 Collins Street. The high-end offices sold for impressive per square metre rates, said Colliers International's Chris Ling, Oliver Hay and Daniel Wolman. Level 6 sold for $380,000 and Level 3 went for $800,000. Rates per square metre were $8636 for Level 6 and $7767 for Level 3. Meanwhile, Chris Ling and David Sia have sold a strata office Suite 31 at 150 Albert Road in South Melbourne for $575,000 with vacant possession.
Croydon
Benjamin Klein and Alex Ham of Gross Waddell have sold 12 Hewish Road for $465,000. The shop sold with a monthly lease term on rental of $30,000 per annum giving a yield of 6.5 per cent.
LEASES
Fitzroy
High-profile national furniture and homeware retailer Matt Blatt will take ground floor space on Johnston Street in a deal negotiated by Fitzroys' Dean Alexander. The retailer leased the 320 square metres on a three-year deal at in excess of $370 per square metre. Matt Blatt has replaced Mei + Picchi, which had been at the site for 25 years.
Mulgrave
A leading vet ophthalmologist has leased refurbished offices at 9-11 Miles Street, taking 350 square metres in the 4100 square metre building currently undergoing a complete refurbishment that will see it split down into tenancies from 300 square metres to a whole-floor option of 2000 square metres. The lease was for 10 years with two five-year options and a net annual rental with rentals about $230 per square metre net, with below market incentives, said Knight Frank's Tristan Payne and Tom Ryan.
St Kilda Road
Colliers International's Matt Cosgrave has negotiated a three-year lease to Office Link Group for 198 square metres on Level 2 of Fort Street Real Estate Capital's 390 St Kilda Road. The lease was settled on gross face rent of $300 per square metre.
South Melbourne
Sports television and distribution company Inverleigh Media has leased a 1075 square metre office at 71-73 Thistlewaite Street. Gorman Commercial's Richard Height negotiated the six-year lease on undisclosed rental. Local sources suggest the rate was about $200 per square metre..
CBD
Travel agency Classic Mooloolaba has agreed terms on a new lease next to Coles Central at Shop 5, 2-26 Elizabeth Street. Classic's new premises is a 19-square-metre tenancy leased on a three-year term with options at a rental in excess of $8600 per annum gross, said Savills Australia's Jock Thomson and Michael Di Carlo.
Notting Hill
Ambulance Victoria has leased a 215-square-metre office at Unit 27, 270 Ferntree Gully Road from Omnico Properties for $275 per square metre net on a 2 + 2 year term. The property is open plan with plenty of natural light, said JLL's Nat Meredith, and would be used as a paramedics training facility.
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