Occupied by long term tenant Tsindos, the three-level, 328sqm building is positioned on the corner of Lonsdale Street and Heffernan Lane and offers more than 30 metres of street frontage.
“The result is a clear indication of a significant supply demand imbalance,” Mr White said.
“This is only the fifth sale of a sub $20 million freehold building in the Melbourne CBD in 2019, with more than double the number of sales occurring in the same period last year.”
Mr Brierley noted that the result, coupled with other recent Melbourne CBD sales, had also demonstrated the significant power of the auction method of sale.
“We had offers before going to market in the mid $5 million range, which were seriously considered by the vendor,” Mr Brierley said.
“However, given the limited supply of CBD assets, we made a clear recommendation that auction was the best method of sale and the result speaks for itself.”
The property was purchased by a Taiwanese investor, who outbid six other parties, including a prominent local under bidder.
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