Commercial sales and leases: Three Hampton shops fetch $3.93m
SALES
Hampton
A local investor has paid $3.93 million – $400,000 over the reserve – on a 3.12 per cent yield for a prime development site or investment property at 466-470 Hampton Street. Located within a 320-trader retail strip, the property has three adjoining shops on separate titles leased to Eli's Alterations, Stirling's curtains and Beautiful Delicious catering at combined annual net income of $123,000 on a short term basis. Teska Carson’s George Takis and Fergus Evans marketed the property in conjunction with Nichols Crowder’s James Glen and Allan Brodie. “This property had a lot going for it, including a prime spot within the bayside’s largest retail strip, several long-standing tenants on short term leases and 670 square metres of commercial zoned land on three titles with low site coverage and rear access,” Mr Takis said.
Port Melbourne
Vacant retail properties are attracting strong attention from investors. Heated competition between three bidders at the auction of 371 Bay Street pushed the price to $1.31 million. Fitzroys’ James Lockwood and David Bourke, in conjunction with Patrick O’Callaghan of O & Co, sold the property for a family who had owned it for 35 years. The two-storey 152sq m building has ground-level retail and a two-bedroom apartment above.
Clayton
Wolfstep Projects has sold all 11 strata office suites at its commercial development at 2 Winterton Road for a total of $2,670,500. The offices range in sizes from 38 to 67sq m with suites snapped up by both owner occupiers and investors. Knight Frank’s Nick Bisset and Matthew Romanin handled the sales. Mr Bisset said the result shows the current strength of the metropolitan strata office market, with an abundance of small businesses looking to purchase their own office suite
Dandenong South
An office/warehouse in the Logis Industrial Estate has sold under the hammer for $2.64 million - $240,000 above the reserve. CBRE’s Tim Homes, James Jorgensen and Ned Murphy steered a highly competitive auction for 25 Babbage Drive contested by four bidders. Based on the new seven-year lease to DNA Print Solutions, the sale price reflects a tight yield of 5.3 per cent and building rate of $1950 per sq m. “This highlights the significant capital growth that has occurred in the Logis Industrial Estate, from a record building rate of $1400 per sq m just two to three years ago,” Mr Murphy said.
Dandenong
Angus Clark and Ivo Redmond of Cameron have sold a premium office warehouse at 246 Hammond Road. The 1163sq m building sold to an expanding manufacturing-based business for $1.76 million. The sale reflects a scarce market for vacant buildings in Dandenong’s tightly held industrial precinct.
Campbellfield
A multifunctional office/warehouse at 57-65 Paulson Road has sold in a private sale after being contested heavily by two interested parties. CVA’s Leo Mancino and Anthony Carbone said the building on a 4180sq m site was snapped up by a local owner occupier for $2.1 million.
Frankston
A property leased to Dulux at 64 Dandenong Road West sold at auction for $1.97 million on a tight yield of 4.7 per cent. Tom Maule and Stephen Gorman from Gorman Commercial said the property attracted six bidders showing good demand from investors.
LEASES
Melbourne
One of the city’s oldest charities, Melbourne City Mission, has leased a whole floor at 420 Collins Street. Fitzroys’ Stephen Land and Sam Friend negotiated the five-year lease with a three-year option over 393sq m on Level 10 of Victory Tower, at $175,000 per annum plus GST. Melbourne City Mission intends to sub-lease part of the floor to Youth Law, another not-for-profit they are co-locating with. The lease comes just weeks before Melbourne City Mission opened its new $8 million crisis accommodation and homeless support centre on King Street.
Melbourne
Last year landlord REST Superannuation invested in a small suite strategy at 140 William Street, which split multiple floors and installed contemporary spec fitouts. Now Colliers International’s Brigitte Doupe, Shane Burns and Tony Landrigan have negotiated a new lease over part level 14 with Promax Development and Construction Management, previously located on St Kilda Road. The developer will take 148 sq m over 3 years at $640 per sq m.
Dandenong South
A 1888sq m property at 58 Brindley Way that was sold with vacant possession recently has quickly been leased to Orafol Australia for 4 years at $184,080 per annum, Cameron’s Al Armstrong and Angus Clark said.
Scoresby
Securinvest Financial Group and Melbourne-based not-for-profit MOIRA have committed to lease a combined 1900sq m of office space at Waterman’s Caribbean Park office complex at 44 Lakeview Drive. Rent at the park are understood to be in the vicinity of $300 per sq m net. CBRE’s Elise Betts and Gianni Macdonald negotiated the deals, the largest of which involves MOIRA signing a 1150sq m, seven-year lease. Securinvest has committed to merging its three existing suburban offices into 750sq m under an eight-year agreement.
Box Hill
NDIS provider Scope Australia will set up an office taking the last vacant space at 19-23 Prospect Street. Colliers International’s Tom Rothel, Kevin Tutty and Damien Adkins said the property was repositioned with extensive refurbishment and was now fully occupied. Scope will pay in the vicinity of $250-300 per sq m for a 436sq m suite.
Hallam
CHS Healthcare has outgrown its current facility and will take a five-year lease over 1 Technology Circuit. CHS will pay $180,000 per annum for the 1961sq m building, Cameron’s Al Armstrong and Angus Clark said.
Hallam
A brand new building constructed by Elite Property Group has been leased to McKay Timber, a major manufacturer and supplier of timber to the Australian market. Colliers International’s Luke Lowden and Sam Hibbins facilitated the lease at 14 Technology Circuit over 1517sq m at gross face rent of 105 per sq m on a 3+3 year term.
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