Acquisitive fund manager buys ex-Salvation Army HQ
EXCLUSIVE
The family of late businessman, Skilled Engineering founder, Frank Hargrave, has sold the biggest commercial building in Melbourne’s leafy Mont Albert Village.
The former Salvation Army headquarters at 3-7 Hamilton Street, Mont Albert, fetched $15.5 million in July, four months after the launch of an expressions of interest campaign.
Forza Capital is the buyer – the price is nearly 20 per cent under guide and 45pc less than what Mr Hargrave, via Larkfield Group, paid in early 2021.
That seller was MaxCap and Troon Group which undertook a swank renovation.
Between 1994-2007, the building was owner occupied by the Salvation Army as its local headquarters.
Mont Albert, which shares the same postcode as Surrey Hills, is about 12 kilometres east of the CBD.
Forza strikes another office deal
With 3720 square metres over three floors and 114 basement car parks – 3-7 Hamilton St is about a third leased.
Based on that, the yield is 3.7pc (story continues below).
Assuming a fully let annual net income of $1.75m, the return is 11.3pc.
The 1573 sqm Commercial 1 zoned site has longer-term mixed-use development upside too, including with an extension.
Lemon Baxter’s Paul O’Sullivan and Hans Fan represented Larkfield.
The agency’s Mario Nobrega, Matthew McCormack and Josh Tebb are also acting for Forza to lease the office balance.
“It was a non-core asset which sat in a significant portfolio held by Larkfield,” Mr O’Sullivan said.
“The significant vacancy led investors to shy away due to financing risks but Forza Capital saw the underlying value in the asset being acquired well under replacement cost and were confident of repositioning the asset,” he added.
Also today we are reporting Forza leased a chunk of an 11 level Lonsdale St office to University High School.
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