A ground floor gym in the Melbourne CBD has sold for $5.05 million – more than $1 million above its reserve price – following a competitive auction between six bidders.
The 369sqm investment at Shop 1, 199 William Street fielded a total of 47 bids before it sold under the hammer to an international investor at a 4.72% yield. The final sale price reflected a strong building rate of $13,686 per sqm.
CBRE’s Melbourne City Sales team, comprising Max Ruttner, Alex Brierley and Leon Ma, handled the marketing campaign on behalf of Melbourne-based developer Hengyi.
Mr Ruttner noted the result highlighted the pent-up demand from local and international investors wanting to secure CBD leased investments.
“It was clear the registered parties were keen to capitalise on the anticipated growth for the western end of the CBD. The auction price quickly escalated from $3 million to $3.7 million within the first few bids and eventually sold to the Chinese investor for $1.15 million over our vendor’s reserve,” Mr Ruttner said.
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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.