A strategic long-term Richmond investment

A brand new, 7-storey office and retail building with an incredible rooftop has just launched to market with JLL’s Office Investments team, being Tim Carr, Josh Rutman, Nick Peden and MingXuan Li.

The property, 19 Cubitt Street, Cremorne, comprises a meticulously designed and Coben built building which provides 1,342sqm* square-metres of first class office accommodation, with the office floors ranging from 179sqm to 256sqm* that provide self contained private spaces that accommodate one tenant per level.
The building also features four end of trip pods, public meeting rooms, a private rooftop and one of Melbourne’s most popular café operators, Nigel, anchoring the building on the ground floor.

The building’s strong standing within the market has generated excellent engagement from the broader tenant market, with the building being 83% leased to five professional businesses, including R/GA Media Group owned by parent company, IPG (NYSE: IPG), Across the Ocean Shipping and Ofload who have several offices across the country.

The building has also averaged a net rental rate of $718/sqm on below-average incentives.
JLL’s Senior Executive from JLL’s Office Investments team, Tim Carr said the property offers a truly unique and rare opportunity to capitalise on a sub $20million investment opportunity with all the hard work already being done.

“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 being surrounded by some of the country’s most prolific businesses, including Adidas, The Commons, Reece, Seek, Carsales.com and many more.

“19 Cubitt Street is one of the only brand new office assets in Victoria to be presented for sale since our transaction of a similar asset across the train tracks at 45 Wangaratta Street which was sold to a Hong Kong family office on a 3.7% yield approx. There are very few boutique office developers who are active in the market, and Curtis York have delivered a state-of-the-art building that stands as a true outlier in the Cremorne market”.

Josh Rutman, Executive Director and Head of Capital Markets at JLL said that “the building is brand new and will continue to be highly sought-after A-Grade office space to tenants which is very attractive to buyers as well as the associated depreciation benefits that come with a new project”.

“With virtually no comparable investment sales of brand-new office buildings in the past 2 years, 19 Cubitt Street is set to create a new pricing benchmark for core Middle Markets commercial assets here in Melbourne”.

Positioned just 300m from Richmond Train Station and Swan Street tram lines, the property is serviced by all forms of public transport and has the highest levels of connectivity, critical to the building’s tenant retention and attraction in the future.

“Both investors and tenants have gravitated towards new office stock which are much better placed to navigate any structural challenges that the sector faces. 19 Cubitt Street is more akin to a ‘block of flats’ which will provide reliable income and consistent tenant absorption due to the unique floor plate sizes”, Mr Rutman said.

19 Cubitt Street, Cremorne if For Sale by International Expressions of Interest closing Thursday 18 April at 2pm (AEST).