This article is from the Australian Property Journal archive
A LOCAL family has snapped up a high profile commercial building in Melbourne’s coveted inner suburb of Hawthorn for $8.35 million.
GormanKelly agents Sam Torrance and Nick Breheny sold 5-7 Guest St with Clinton Baxter and Dorothy He of Savills. They said the private placement sale process received interest from local and Asian investors, resulting in a tight yield of 4.33%.
Australian market research firm DMB Consultants Pty Ltd has a five-and-a-half year lease plus a five-year option over the 1,039 sqm two level building, retuning a net annual rent of $362,000 including 3.5% fixed annual rent reviews and outgoings.
The property has commercial 1 zoning and a demolition provision available from March 2024.
Baxter said multiple buyers were drawn to the property’s blue chip location, strong tenancy, in addition to the building’s exceptional presentation.
The recently refurbished building has new glass partitioned boardrooms and meeting rooms, modern open plan co-working areas, kitchen and bathrooms, and 19 secure car parking bays.
“We generated a huge amount of interest from Chinese buyers all keen to secure an asset in Hawthorn, but ultimately they were out-maneuvered by a strong local family with other nearby assets seeking to expand their portfolio,” Torrance said.
