Melbourne, 01 June 2016 – A local buyer has secured a Preston investment two weeks prior to auction for $1.1 million - 40% in excess of the vendor’s expectations.
The 460sqm property at 569 – 571 High Street is leased to Jam Hut recording studio - an institution in the Melbourne music community.
Jam Hut has called the Preston address home since 1978.
CBRE City Fringe and Metropolitan Investments’ Sandro Peluso, Josh Twelftree and Chris Game negotiated the sale on behalf the private vendor, who owned the property for more than 40 years.
Mr Game said the strong sale result prior to auction was evidence of the demand for prominently positioned investments with development upside across Melbourne.
“The property drew significant interest from a strong contingent of investors and developers, given the site’s location within the priority development zone, and close proximity to the High Street retail precinct,” Mr Game explained.
Mr Twelftree said the property, which was offered to the market with a lease until 2020, was hotly contested despite some challenges.
“The property presented some challenges, such as the existing lease, which placed limitations on the immediate development potential. The narrow frontage and condition of the existing building, which would require substantial capital works to maximise the future income, also presented uncertainties,” Mr Twelftree explained.
“Despite these challenges, we were able to provide buyers’ confidence around its development potential and alterations to the existing building through a variety of industry leading consultants.
Mr Twelftree added: “The sale demonstrates the demand for well-presented stand-alone buildings with income and favourable zoning that offers both development potential and investment return in the short term.”
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.