Private investor Brendan Sullivan is understood to be banking about $42 million from the sale of an East Melbourne office for years part-occupied by Melbourne Water.
Mr Sullivan bought 122-130 Wellington Parade, then an unrenovated seven-level building, for $7.4 million in 2005.
Later, he had a 200 square metre apartment constructed off-site then fitted to the rooftop.
The ground floor is configured with retail – part of which was once occupied by residential real estate agency Woodards.
Melbourne Water occupied about 2000 sqm of the building before relocating to a new headquarters in Docklands in 2012.
All up, the asset, more commonly known as 126 Wellington Parade, includes about 4083 sqm of lettable area.
It sits on a 1141 sqm block about a kilometre from the CBD.
Based on the annual rental return of $1.72 million, it is selling on a yield of about 4.1 per cent.
CBRE marketed the building for its potential to be redeveloped or converted into a hotel or residential complex.
It was marked ‘under offer’ earlier this week.
Shortly after Mr Sullivan listed 126 Wellington Parade, PSC Insurance offered for sale a building it owner-occupies at nearby #96 (pictured, below).
PSC paid $10.5 million to the Roman Catholic Trust Corp for the Diocese of Melbourne for this five-level building in 2016.
For sale by Vinci Carbone with a seven year leaseback, 96 Wellington Parade, on a 512 sqm block, now carries a price guide of between $15 million and $20 million.
Upper levels of both #96 and #126 offer view lines over train tracks to parkland and the Yarra River.
Earlier this week we reported that Mantra Group had committed to an unbuilt 11-storey hotel earmarked for 203-207 Bridge Road, Richmond.
Bridge Road is the continuation of Wellington Parade, east of the Hoddle Street/Punt Road intersection.