A two-storey office building in the affluent suburb of Malvern has sold at auction for $3,010,000, 21 per cent over the vendor’s reserve price.
CBRE’s Melbourne Middle Markets team of Scott Orchard, Scott Hawthorne and Leon Ma managed the sale of the 1328-1330 Malvern Road property, with the sale price translating to a market yield of 4.21 per cent.
“Following a campaign which attracted over 125 enquiries, the auction saw seven bidders battle it out for the property, which was eventually knocked down to a domestic investor,” Mr Orchard commented.
“The result demonstrates the demand for well-located properties, especially considering the property’s prime suitability for an owner/occupier.”
Mr Hawthorne said the marketing campaign had attracted interest from domestic and international buyers looking for opportunities with strong underlying fundamentals including significant land value and a location which had seen local vacancy consistently under four per cent.
“Investors are acutely aware of the current office tenant predilection for inner eastern locations, which has driven some very good results over recent months,” Mr Hawthorne said.
“Buyers were conscious of the scope for future rental growth driven by historically low vacancy in the immediate area, and the prospect of alternate future uses of the building given its strong underlying fundamentals.”
With an NLA of 331sqm, the property lies within the Malvern village, surrounded by boutique cafés and restaurants.
CBRE’s Melbourne Middle Markets team of Scott Orchard, Scott Hawthorne and Leon Ma managed the sale of the 1328-1330 Malvern Road property, with the sale price translating to a market yield of 4.21 per cent.
“Following a campaign which attracted over 125 enquiries, the auction saw seven bidders battle it out for the property, which was eventually knocked down to a domestic investor,” Mr Orchard commented.
“The result demonstrates the demand for well-located properties, especially considering the property’s prime suitability for an owner/occupier.”
Mr Hawthorne said the marketing campaign had attracted interest from domestic and international buyers looking for opportunities with strong underlying fundamentals including significant land value and a location which had seen local vacancy consistently under four per cent.
“Investors are acutely aware of the current office tenant predilection for inner eastern locations, which has driven some very good results over recent months,” Mr Hawthorne said.
“Buyers were conscious of the scope for future rental growth driven by historically low vacancy in the immediate area, and the prospect of alternate future uses of the building given its strong underlying fundamentals.”
With an NLA of 331sqm, the property lies within the Malvern village, surrounded by boutique cafés and restaurants.
For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
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.
