Near-new Dandenong office sells for $17.3 million

One of the newest buildings in Dandenong – a suburb which was for generations marketed as Melbourne’s second city – has sold for $17.3 million.

The office at 1-9 Dandenong Street (pictured, top) is fully leased to the state government as the metropolitan Multidisciplinary Centre (MDC) in Victoria.

It was built four years ago after the government pre-committed to about 80 per cent of it for a ten-year term (it later extended its occupancy to take out the whole building).

Based on the annual rental return of $1,057,300, the asset is trading on a passing yield of 6.1 per cent. Dawkins Occhiuto director Walter Occhiuto listed the property in mid-July via an expressions of interest campaign which closed on August 23.

Rising three storeys, with 2846 square metres of lettable area and 95 car spaces, 1-9 Dandenong Street occupies a 3134 square metre block on the south-east corner of Cheltenham Road, not far from an Eastlink entrance. The Dandenong Central Activity District is also in the vicinity.

According to its website, MDCs “co-locate a range of partner agencies in the one building to provide a victim-centred, integrated and holistic response to victims of sexual crime and child physical abuse”.

There are six MDCs in Victoria. The others are in Bendigo, Geelong, Mildura, Morwell and Seaford.

Marc Pallisco

A freelance property writer and experienced analyst, Marc is the co-founder of realestatesource.com.au

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