Landmark East Melbourne office building sold in major healthcare precinct deal

A prominent three-level office building in the heart of East Melbourne has been sold, marking a significant transaction in one of Melbourne’s most tightly held commercial precincts.

The property offers direct connectivity to major institutions and benefits from its proximity to the CBD, making it an attractive proposition for office occupiers and investors alike.

Located at 344 Victoria Parade, East Melbourne, the building previously housed Virtus Health, which has since relocated, leaving the property available for repositioning as premium office accommodation.

The sale was managed by CBRE’s Middle Markets Office and Australian Healthcare & Social Infrastructure team, comprising Nick Peden, Sandro Peluso, Jamus Campbell, and Mark Granter.

CBRE Senior Director, Nick Peden, commented, “East Melbourne continues to be one of the most desirable fringe office locations in the city. The strong interest in this asset reflects the resilience of Melbourne’s office market and the growing appetite for well-located, adaptable commercial buildings.”

Mr Peden added, “The campaign attracted significant interest, with several unconditional offers received from both local and international investors — an exceptional result for a vacant property in today’s market.”

Mr Peluso said, “This location is second to none. It sits at the gateway to Melbourne’s CBD and is surrounded by a mix of institutional and corporate tenants. The area’s connectivity, amenity, and prestige make it a magnet for office users seeking quality space outside the core.”

Mr Peluso also noted a broader market trend, “We’re seeing a noticeable uptick in commercial property buyers, driven by the recent decline in interest rates. Savvy investors understand that lower borrowing costs typically lead to increased demand — and with that, rising property values. With the market poised for growth, now is an ideal time to secure a commercial asset before prices climb further.”