Heavy demand in Cremorne has continued to deliver strong results in the Melbourne city fringe hotspot, with a stylish three-level office building the latest to trade with a sizeable price tag.
Fitzroys’ Stuart Kennett and David Bourke sold the well-presented strata property at 97 Green Street for $1.805 million.
One of two within a block, it has three year lease with a three-year option to ASX-listed biotechnology group Rhinomed Ltd, returning $95,000 per annum plus all outgoings, and sold at a 5.25% yield.
Kennett said the floor rate of $9,304 per sqm was remarkable for a strata property, rivalling the land area rates of freehold sites recently sold in the suburb with highly sought-after development potential, including 2-4 Wellington Street and 7-11 Hill Street.
He said the campaign for 97 Green Street attracted more than 70 enquiries from a mix of investors and owner occupiers.
“Cremorne office rents have led growth in Melbourne outside of the CBD, as the precinct attracts a growing residential and office worker population amid a number of boutique and larger-scale developments,” he said.
“Office rents have grown by more than 12% over the past year and demand has seen vacancy levels pushing closer to 2%. The large development pipeline will further enhance the precinct growth’s prospects, as will its close proximity to the bustling Swan Street hospitality and lifestyle precinct, the MCG and AAMI Park.”
Major Cremorne developments on the horizon include Caydon Property’s $1 billion mixed- use development The Malt District, while Alfasi’s nine-level, 18,000 sqm building planned for 510 Church Street and Pergrine Projects’ planned 10,500 building at 175 Burnley Street have recently been approved.
The former industrial inner city pocket has attracted a range of tech and specialised tenants amid rapid development, with nearby tenants including Seek, REA, Carsales, Tesla, and Disney.
A rare and unique site tucked just behind the bustling Smith Street precinct in Collingwood has sold for $1,550,000.
Abutting the Coles and the 200 + Smith & Co. residential complex, the property at 23 Little Oxford St, Collingwood was sold by Beller Commercial, with an approved permit and endorsed plans for 6 levels of mixed use development.
Offered for the first time in 20 years, Beller Commercial will auction on site 19 Glen Eira Road, Ripponlea on Friday, 20th April at 12pm.
Listed as an “affordable opportunity in the heart of Ripponlea”, the property is fully leased to longe term tenants and currently returning a solid rental income.
“This is absolutely a budget buy and an ideal SMSF investment,” according to the selling agents.
"This property comprises of a double storey freehold commercial building and is extremely well positioned in the highly sought after suburb of Ripponlea with well-tenanted long term return.
"As we all know having respectable neighbours is always essential and this great investment is in very close proximity to IGA X-press, Ripponlea Food & Wine and one of the World’s 50 best restaurants Attica," the agents added.