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85-87 High Street, Kew fetches circa $9million
MELBOURNE, 5 SEPTEMBER 2013 – A private investor has purchased the high profile office building at 85-87 High Street, Kew for a price believed to be circa $9 million.
Peter Sprekos and Joshua Tebb of Jones Lang LaSalle sold the striking, architecturally designed, three level office building via private negotiation on behalf of high profile private owner Ian McGoldrick.
Located in Kew, one of Melbourne’s most tightly held suburbs, the property is situated approximately 5 kilometres east of Melbourne’s CBD on the Northern side of High Street (South). Within close proximity to Kew Junction, 85-87 High Street benefits from major exposure due to its significant and prominent frontage to High Street and substantial traffic volumes.
Zoned Commercial 1, the property occupies a total land area of approximately 1,845 square metres, comprising a total net lettable area of approximately 2,285 square metres with secure basement car parking for 62 cars.
The property has immediate access to public transport, major schools and is within walking distance of the bustling Kew Junction, offering excellent retail amenity.
Currently tenanted by GTA Pty Ltd (lease expiry September 2013) and Brown Brothers Milawa Vineyard Pty Ltd, the property currently provides the successful purchaser with a current net passing income of approximately $705,000.
Mr Sprekos said, “Interest levels were high given its position in an extremely sought after, well established retail and office location.”
“Such strong demand, in particular from investors, was surprising given the upcoming vacancy of the GTA tenancy, an occupier of approximately 70% of the building. Typically, purchasers would apply a discount due to the vacancy and the re-letting risk,” Mr Sprekos added.
Mr Tebb said, “The City of Boroondara is the best performing office market in Victoria with vacancy at a low of 7.85%, compared to the overall South East market vacancy of 9.4%, and due to this the price was not discounted to account for re-letting to a new tenant.”
“Given the upcoming vacancy and the low cost of debt, the property also attracted strong interest from owner occupiers, predominately from business owners residing in the immediate affluent residential areas. Overall, 85-87 High Street was highly sought with three bidders, two of whom narrowly missed the opportunity,” Mr Tebb added.
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