A securely leased and low maintenance office investment is on offer in the evolving Southbank office precinct. Colliers International’s Andrew Ryan and Daniel Wolman have been appointed to sell 85 Coventry Street, Southbank, Victoria.
“It is very hard to find quality office buildings of circa 2,000 square metres for sale, particularly stand-alone freehold titled buildings with a flexible tenancy profile which lend themselves to all purchasing profiles,” Mr Ryan said.
“This is an easy maintenance, dual-tenanted office building in one of Australia’s hottest property markets and the price range is affordable to many private investors, super funds, syndicates and developers.”
It is expected the property will attract interest above $13 million.
The three level, 2,006 square metre building is situated on the corner of Coventry Street and Dodd Street, with a close proximity to Melbourne CBD, St Kilda Road office markets, Botanical Gardens and Albert Park.
The location also enjoys the outstanding amenities in the neighbouring suburbs, including Clarendon Street shopping strip and South Melbourne Market.
Mr Wolman said the Southbank has recently become well wanted residential area.
“Southbank has seen a transformation from a major office precinct to becoming a chic inner city residential haven in recent years,” Mr Wolman said.
“It forms part of the broader Melbourne city fringe market, widely recognised as being one of Australia’s hottest, most sought after commercial and residential precincts. “The ground floor, and first floor covering a total of 1,194 square metres are leased to Devine Limited and the second floor covering 812 square metres is occupied by Adslot Limited. Both are well established tenants, with their leases expiring in 2017.
Mr Ryan said the established tenants gives the future owner time to organise their plans for the office building.
“Therefore there is immediate comfort from a holding income point of view and developers, owner occupiers or investors have time to establish the next chapter in 85 Coventry Street’s life,” Mr Ryan.
“Set on 976 square metres of land, the property’s value is underpinned by its favourable Mixed Use Zoning and position within a current 60 metre height precinct, allowing for a residential development (STPA).”
“The immediate area has undergone much change in recent times with recent residential developments such as The Guilfoyle, Elm Apartments and Albert Tower. Like these projects, any future development at 85 Coventry Street would benefit from excellent park, lake and CBD views.”