An office/warehouse facility in Melbourne’s Logis Industrial Estate has sold under the hammer for $2,640,000 - $240,000 above the reserve price.
CBRE’s Tim Homes, James Jorgensen and Ned Murphy steered the highly competitive auction of the 25 Babbage Drive, Dandenong South property, which was contested by four separate bidders and generated a total of 20 bids.
Based on the new seven-year lease to DNA Print Solutions, the sale price reflects a tight yield of 5.3%.
“The facility appealed to a large number of investors given the high-quality covenant, tightly held Logis Industrial Estate location and proximity to major road arterials,” Mr Homes said.
Mr Murphy added that the 1,361sqm facility had traded at a strong building rate of circa $1,950sqm.
“This highlights the significant capital growth that has occurred in the Logis Industrial Estate, from a record building rate of $1,400/sqm just two to three years ago,” Mr Murphy said.
CBRE’s Tim Homes, James Jorgensen and Ned Murphy steered the highly competitive auction of the 25 Babbage Drive, Dandenong South property, which was contested by four separate bidders and generated a total of 20 bids.
Based on the new seven-year lease to DNA Print Solutions, the sale price reflects a tight yield of 5.3%.
“The facility appealed to a large number of investors given the high-quality covenant, tightly held Logis Industrial Estate location and proximity to major road arterials,” Mr Homes said.
Mr Murphy added that the 1,361sqm facility had traded at a strong building rate of circa $1,950sqm.
“This highlights the significant capital growth that has occurred in the Logis Industrial Estate, from a record building rate of $1,400/sqm just two to three years ago,” Mr Murphy said.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
