Melbourne developer Andreas Angelatos has found an occupier for the office component of a retail and commercial Toorak building he bought for $7.41 million at a fast paced auction, last October.
A psychotherapy and allied service practice has committed to the 120 square metre space at 617 Malvern Road for two years.
The annual rent of $35,000 includes two car parks.
Teska Carson’s Reece Israel leased the space, at the eastern edge of the Hawksburn Village retail strip.
Investment has major development upside
On a 471 sqm Commercial 1 zoned block at the north west corner of Mathoura Rd, 617 Malvern Rd is expected longer term to be redeveloped with a taller, mixed-use complex, likely above a basement car park.
Mr Angelatos paid $2m over expectation for the property – the auction attracting fresh bidding at $6.4m, so at $1m over the reserve.
Several suitors were still contesting beyond $7m (story continues below).
The result priced every sqm of land at $15,732.
Mr Israel said Hawksburn Village “is one of Melbourne’s most coveted, well patronised and best performing retail/commercial precincts” and for that reason “any leasing opportunity is normally well received by the market”.
“The property offered a very flexible office layout and abundant natural light due to its corner position, attributes that made it appealing to a wide range of potential tenants,’’ the agent added.
Toorak, considered Melbourne’s most exclusive suburb, is six kilometres south east of the CBD.
Last August, another local developer, Brendan Sullivan, acquired a two storey Toorak mised-use commercial investment at the northern-most T-intersection of Mathoura Road: 428 Toorak Road cost just over $8m.
Businessman and National Basketball League (Australia) owner Larry Kestelman also bought a residential development site in the suburb, spending over $9m on 300 Williams Road, opposite Como House (which is on the South Yarra side of the street).