“Frankston, along with much of the Mornington Peninsula, has grown exponentially in recent years, with the market’s continued low vacancy and incentive conditions allowing vendors to achieve exceptional returns,” Mr Peluso said.
Six local parties and three Chinese investors competed to acquire the two-level commercial building, resulting in a sale price which reflects a building rate of $3,647/sqm and a land rate of $4,129/sqm.
“The final sale price and strong offshore bids set a new precedent for the Frankston commercial market, with the nine offers representing more than $100,000,000 in capital pursing opportunities in the Mornington Peninsula, including $35,000,000 in Chinese capital,” Mr Peluso said.
Pragmatic Training - a national education provider with additional training locations in the Melbourne CBD and Brisbane - recently signed a new eight-year lease over the 3,718sqm building, which it has occupied for the past 10 years.
Mr Orchard said the secure income stream, central position in the Frankston CBD and the property’s significant site size of 3,290sqm had been key attractions for prospective purchasers.
There is also a planning permit in place for an expansion of the existing building to accommodate a 120-childcare centre and associated training facility.
“The property suits the occupiers needs and has potential to accommodate growth plans, plus there are attractive 3% annual increases, which made this a compelling passive investment with future value add or development potential,” Mr Orchard said.
“Purchasers were also attracted by the significant private and public investment occurring in the central Frankston CBD area, with $550million of projects recently completed, underway or commencing soon.”
For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), 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 2016 revenue). The company has more than 75,000 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.