Backed by a lease to the ASX listed AHG Group, the 20-22 Overton Road property was sold to a local investor on a strong initial yield of 5.71%.
CBRE’s Mr Du Rieu said the transaction highlighted the keen buyer demand for high quality properties with strong lease covenants and future upside.
The Frankston property offers a substantial land holding of 8,800sqm and encompasses a 2,800sqm, sales and servicing facility which was purpose built for Ford’s Frankston operations in 2012.
Mr Du Rieu said the sale campaign had garnered interest from over 83 individual parties including local and national private investors, other car dealers, Asian investors and institutional funds.
“Given the price point and income the property generated, we were able to engage a broad spectrum of potential purchasers, both locally, nationally and internationally,” Mr Du Rieu said.
The property was secured with a five-year, triple net lease, expiring in April 2022, however Mr Du Rieu said the buyer recognised that the tightly held nature of the Overton Road and Wells Road precincts meant the tenant might well stay at the property for the foreseeable future.
The transaction represents the fourth $10,000,000+ deal, with a lease tail of less than five years, to have been secured by the CBRE Retail Investments team in 2018.
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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 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.