This article is from the Australian Property Journal archive
A LOCAL investor and owner occupier has paid $5.2 million for a South Melbourne office building, the latest to change hands in the city fringe suburb with attractive development prospects.
Lemon Baxter’s Chris Curtain and Paul O’Sullivan sold 16-22 Eastern Road, which has a two-level 715 sqm building leased to Veris Limited with a 12-month WALE and return of $252,000 per annum net.
The sale price reflecting a 4.8% yield.
Zoned Commercial 2, the 391 sqm site has potential for a six-level office and was sold with a Hayball Architects scheme for the site that includes an office building of 1,500 sqm.
Curtain said 16-22 Eastern Road was possibly the last owner occupier opportunity available of its size in South Melbourne, with more than 150 enquiries for the building coming down to four bidders, all of which were potential owner occupiers.
Lemon Baxter had just sold the 2,767 sqm island site at 210 Kings Way in the suburb for $32.01 million. The property has a 4,949 sqm fully leased five-level building and 85 parking spaces, and similarly sold with a Hayball Architects scheme and yield study.
In June, the state government paid around $23 million for another South Melbourne island site, of 2,714 sqm at 142 Dorcas Street, that will be redeveloper into a new Victoria Police complex.
That was followed by a local buyer paying $6.5 million for a corner development site of 884 sqm at 30-38 Thistlethwaite Street, with three street frontages. Zoned Capital City, the property sold with a demolition clause in its lease, and a Design and Development Overlay 30 offering development potential of up to 18 levels.
Lemon Baxter has sold more than $100 million of property in South Melbourne over the last 12 months.
Australian Property Journal
