Three prime properties in the Box Hill area found buyers this week, in deals speculated to be worth a total of about $55 million.
At 27 Market Street, Box Hill, a strip shop rising three storeys and with upper level offices – sold before a crowd of more than 200 at auction on Thursday for $8.8 million setting a record rate per square metre of land in the suburb ($61,100).
It traded to an Asia-based investor who competed with two more offshore parties and two local groups.
Market Street is a small, busy and “tightly held” retail thoroughfare connecting Whitehorse Road to Main Street and an entrance to the Box Hill Central Shopping Centre near the suburb’s train station.
On a 144 square metre block zoned Commercial 1 – so being able to accommodate something even taller – the holding (pictured, top), containing a 327 sqm building, was marketed by CBRE’s Leon Ma, Jimmy Tat and Lewis Tong.
Based on the rental 27 Market Street returns ($277,347), it is selling on a 3.15 per cent yield.
It is also exchanging at a land rate more than twice that of a Melbourne CBD retail asset which was auctioned in August at 349 Elizabeth Street. This property achieved a result of $6.81 million valuing the land at about $28,734 per sqm. In April, a historic corner building at 220 Bourke Street, near the Bourke Street Mall, sold for $15.05 million, valuing the land at $75,646 per sqm.
The Market Street, Box Hill, deal comes in the same week St Paul’s Lutheran Church at 711 Station Street in the suburb (pictured top, left), marketed to developers, has gone under offer. On a 2597 sqm parcel also zoned Commercial 1, and able to accommodate a high-rise building, this block was expected to trade for about $20 million following a Colliers International campaign. Instead it is selling to a first-time Hong Kong based buyer for $29.5 million following a deal sealed by Hamish Burgess, Trent Hobart and Jun Lai.
Also this week the Loyal Orange Institution of Victoria offloaded a 1.2 hectare block at 325 Station Street, Box Hill South (pictured, left). Zoned Commercial 3, this property was marketed for its potential to make way for a low or medium density residential complex and carried price expectations of more than $15 million. ICR Property Group represented the vendor.