A South Melbourne office building has sold at auction for an auspicious price of $8,088,000 in the suburb’s seventh freehold office sale this year.
CBRE agents Julian White, Dylan Kilner and Chao Zhang negotiated the sale on behalf of Rescom Mortgages, who has occupied the 100 Park Street building for over 20 years.
It is the latest in a string of transactions, which has propelled South Melbourne to be the most active Melbourne city fringe market in 2019.
A local private investor acquired the three-level building, which provides 1,369sqm of net lettable office and retail space. The asset occupies a 595sqm corner site, offering a favourable mixed-use zoning.
“More owners are looking to sell to capitalise on the current market conditions, as the shortage of Melbourne CBD office supply reaches a 10-year high. With rents in the city fringe climbing at 16% over the past 12 months, owner occupiers, tenants and investors are scrambling for space, which is driving strong sales results,” Mr White said.
Mr Kilner noted; “South Melbourne is now the city’s most in demand city fringe market. Access to beachside suburbs, St Kilda Road and the Melbourne CBD coupled with South Melbourne’s famous cafes like St. ALi are what makes the suburb so appealing to all buyer types.”
South Melbourne is set to benefit from the Victorian Government’s $11 billion Anzac Station development at the intersection of Park Street and St Kilda Road, approximately 500m from the property – allowing easy access to the Melbourne CBD and inner northern suburbs.
CBRE agents Julian White, Dylan Kilner and Chao Zhang negotiated the sale on behalf of Rescom Mortgages, who has occupied the 100 Park Street building for over 20 years.
It is the latest in a string of transactions, which has propelled South Melbourne to be the most active Melbourne city fringe market in 2019.
A local private investor acquired the three-level building, which provides 1,369sqm of net lettable office and retail space. The asset occupies a 595sqm corner site, offering a favourable mixed-use zoning.
“More owners are looking to sell to capitalise on the current market conditions, as the shortage of Melbourne CBD office supply reaches a 10-year high. With rents in the city fringe climbing at 16% over the past 12 months, owner occupiers, tenants and investors are scrambling for space, which is driving strong sales results,” Mr White said.
Mr Kilner noted; “South Melbourne is now the city’s most in demand city fringe market. Access to beachside suburbs, St Kilda Road and the Melbourne CBD coupled with South Melbourne’s famous cafes like St. ALi are what makes the suburb so appealing to all buyer types.”
South Melbourne is set to benefit from the Victorian Government’s $11 billion Anzac Station development at the intersection of Park Street and St Kilda Road, approximately 500m from the property – allowing easy access to the Melbourne CBD and inner northern suburbs.
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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.
