US based global investment management corporation BlackRock is selling an office within a business park in Melbourne’s inner east.
Building 10 at 658 Church Street is expected to trade for about $80 million – almost twice the $45 million BlackRock paid in 2016.
The four-level, 7959 square metre office has since undergone a major refurbishment.
On a 3787 sqm plot zoned Commercial 2, the offering includes 279 car parks.
Within leasing circles, 10/658 Church Street is renowned for its large floor plates (about 2700 sqm).
STA Travel recently committed to rent 700 sqm.
Sixty per cent of the rental income, however, comes from two major companies: Walt Disney Corporation, a New York Stock Exchange giant (its 2018 revenue was USD$59.4 billion), and ASX-listed National Australia Bank.
“The Richmond and Cremorne office precinct has undergone an evolution over the past two to three years and now provides access to world class food and beverage offerings, extensive public transport options and, perhaps most importantly, a growing millennial workforce,” Mr Pillai said.
“The presence of global brands such as Tesla, Uber, 7 Eleven and Walt Disney is driving strong demand from new occupier, which has resulted in strong and sustained rental growth over the past two years and further growth forecast.”
Mr Joyes added that BlackRock’s recent renovation presents the office as new.
“Campus style floor plates of circa 2700 sqm provide flexibility for large occupiers as well as the opportunity to sub-divide into multi-floor tenancies”.
About $900 million worth of A-grade office development is taking place within 500 metres of 10/658 Church Street, Mr Joyes said.
“This precinct is one of the most sought-after locations in the country for both investors and tenants, which will continue to underpin attractive ongoing rental and capital value growth”.