This article is from the Australian Property Journal archive
A COMMERCIAL suite in the National Trust listed Century Building at 125 Swanston St in Melbourne's CBD has sold for $655,000 on a return of 8.22%.
DTZ agent Danny Clark sold Unit 507 to a private investor. The suite overlooking Melbourne Town Hall, comprises 180 sqm of space.
Clark said the suite is currently tenanted by a long standing tenant Australian Jewellers Supplies, which has occupied the space for 16-years and has over 110 years of trading history.
The current net income from the suite is $54,668, with the tenant meeting all outgoings under a three year plus three year option lease. The lease has annual rental increases of four percent provided, with the next option renewal due on 1 May 2015.
“We are seeing a growing appetite from investors for investment opportunities in the $500,000 to $1.5 million range, either as tenanted investments or as full or part floors. Investors are looking to take advantage of the opportunity to value add to properties by either upgrading or further subdividing in order to maximise return.
“Over the past 12-24 months, the core interest within the marketplace has been with owner occupiers, however the recent surge in investor enquiries indicates that there is a growing confidence within the strata office sector,” he added.
“The investor response for 507/125 Swanston St and its ensuing sale within a month of marketing commencing is indicative of this demand, and we are very pleased with the outcome,” he concluded.
Property Review
