Commercial Real Estate News, Trends and Insights

Award Winning Sale: 613 St Kilda Rd, Melbourne

We recently sold 613 St Kilda Road, Melbourne following an Expressions of Interest campaign.

The commercial property, which hadn’t been publically offered for 20 years, comprised a 5 level 1980s standalone office building occupying a corner site of 1,038m2 and provided a passing return of $291,000 net per annum. The building which was configured with demolition clauses offered vacant possession in 2017  and was sold with the benefit of a Rothe Lowman development scheme for a 20 level residential development.

The campaign drew significant interest from both local and offshore buyers culminating in over 100 enquiries with a mix of interest from passive investors, developers and local owner occupiers.

The building offered a rare entry level St Kilda Road opportunity and generated strong interest from commercial real estate investors seeking to reposition the asset moving forward with a number of developers also vying for the property. The property was eventually sold for $12.1 million to a locally based large scale CBD Chinese developer who out muscled a number of investors, owner occupiers and multiple developers. The result was some 30% above the $9.5 million expectation and reflected a low yield of 2.4% and $11,700psm on land area.

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Robert Kelly

Written by Robert Kelly

Rob founded GK in 1994 out of a passion for real estate and property that began when he was in his teens. Through a combination of entrepreneurial thinking, adherence to principles and unwavering persistence, he has guided the business to become one of Melbourne’s most prominent and trusted commercial property agencies.

For the last 20 years, GormanKelly has been a long-term companion of Melbourne commercial property investors from managing assets, to selling and buying commercial real estate. If you need any assistance with your commercial property this year, let us know your requirements so we can help you achieve your commercial property investment goals: 
 
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