Two side-by-side offices in the affluent Melbourne suburb of Hawthorn East have been purchased for $4,450,000 by a local investor.
CBRE’s team of David Minty, Nathan Mufale, Sandro Peluso, Scott Hawthorne and JJ Heng managed the sale of the 345-347A Riversdale Road properties, which translated to a building rate in excess of $8,600/sqm.
The buildings occupy a combined 878sqm corner landholding across three titles near Camberwell Junction, and were sold with vacant possession.
“Following a campaign that attracted more than 125 enquiries, eight bidders submitted offers for the property, which was eventually sold unconditionally to a domestic buyer,” Mr Minty said.
“The result demonstrates the demand for well-located properties, especially considering the property’s prime suitability for an owner-occupier.”
The sale follows similar transactions in Hawthorn East, including Forza Property Group’s transaction of the office building at 90 Camberwell Road for a profit less than 12 months after buying the then-vacant asset.
The vacant retail building at 169 Camberwell Road also sold for $3,500,000 last month.
Mr Hawthorne said the Riversdale Road transaction highlighted an emerging trend of investors snapping up offices with high levels of vacancy.
“We’ve seen a number of notable transactions of offices with high vacancy rates in recent weeks,” Mr Hawthorne said.
“Some passive owners are looking to offload properties that are not currently providing an incoming stream, while investors are taking a long-term view of the leasing market and tenant demand on the other side of the COVID-19 health crisis.”
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 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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.
