A string of three office investment sales in Melbourne CBD and metropolitan locations in the past week has put all Melbourne’s office investment sales in Q12021 (above $5 million) at $412 million, tracking consistently compared to Q12020 which hit $449 million.
40 Barry Street Carlton, 27 Niagara Lane, Melbourne and 883 Toorak Road, Camberwell were three recent transactions completed in the space of a week.
40 Barry Street and 883 Toorak Road both sold to local Asian investors following Expressions-OfInterest campaigns whilst 27 Niagara Lane sold during auction.
883 Toorak Road received more than 100 qualified inquires, 30 private inspections and 6 unconditional offers at the close of the sale process.
JLL’s Head of Capital Markets – Victoria, Josh Rutman said “These sales are a clear indication of the strong pent-up demand for strategically located office properties in Melbourne’s city-fringe, particularly from owner occupiers who are looking to capitalise on the low interest rate environment and secure their future business headquarters.”
“Investors and developers continue to seek out both development sites and existing buildings in and around the Melbourne CBD, buoyed by the strong economic forecasts for Victoria.”
Mr Rutman continued, “Despite vacancy uncertainties, buyers are still pricing office buildings aggressively across all geographies. Owner occupiers remain active due to the record low cost of debt environment and the appeal of standalone buildings in strategic inner and middle ring suburban locations has proven attractive to a range of investors and owner occupiers.”
“Investors and developers continue to seek out both development sites and existing buildings in and around the Melbourne CBD, buoyed by the strong economic forecasts for Victoria. Low volume of quality supply of investment stock is seeing pent up demand drive pricing to new highs,” Mr Rutman concluded.
“45 Wangaratta Street is an ideal fully leased commercial
investment that is not dissimilar to a block of residential
apartments in that when vacancy arises, tenants are quick
to fill the space and start paying rent. ”
JLL Head of Capital Markets, Josh Rutman
JLL’s Head of Capital Markets – Victoria, Josh Rutman, Piers Jalland, Tim Carr and MingXuan Li have been appointed to sell the seven storey building at 45 Wangaratta Street via an Expressionsof-Interest campaign, which is a fully leased investment that has a diverse tenant mix and provides flexible floor plates with exclusive amenity and balcony spaces.
Just 300 metres from Richmond station and offers a future proofed investment with strong fundamentals which are expected to attract the attention of a range of investor groups.
The Richmond Interchange Precinct forms one of the most tightly held commercial pockets in Melbourne, extending from Swan Street to Punt Road along the Richmond train line. With only 4 major transactions taking place in the precinct over the last five years, 45 Wangaratta Street offers a truly unique opportunity to secure a rare piece of the Richmond precinct which benefits from seamless access to the Richmond Train Station (300m), superior zoning and accessibility to neighboring Cremorne and immediate proximity to local retail and lifestyle amenity.
The building is positioned on the cusp of Australia’s best performing commercial office precinct of Cremorne with major corporates such as Domain, REA, 2XU, Tesla, Mecca Brands and Culture Amp with premises nearby.
Mr Rutman, said: “Opportunities within this tightly held precinct come along very rarely, and we expect to
generate strong interest from local, interstate and offshore investment groups due to the building’s sound investment fundamentals and unrivalled location just 300m from the train station”.
“There is a distinct lack of quality investment stock on market and given the building leased exceptionally well throughout the recent lockdown precinct, this should provide investors with a lot of confidence that the asset will stand the test of time”.
Designed by MAArchitects (also an occupant within the building), the property presents as a brand new and meticulously designed project that features a combination of flexible floor plate sizes to attract tenants that prefer their own self-contained office spaces. The building was consistently leased throughout COVID in 2020, which is a testament to its long-term appeal.
Perfect for tenants of the future, the building has access to high levels of light and ventilation as well as protected view corridors across the Melbourne CBD and surrounding suburbs, which offers a unique perspective for tenants within the building.
With virtually no comparable investment sales of brandnew office buildings in the past 5 years, with he exception of 51 Langridge Street and 71-93 Gipps Street that both sold during the early stages of construction for record prices, 45 Wangaratta Street sets a new benchmark of investment security and offers the chance to secure a unique piece of the Richmond Interchange precinct.