Brendan Sullivan selling East Melbourne office for c$42 million

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.

The view from an apartment vendor Brendan Sullivan had built off-site and transported to 126 Wellington Parade.

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.

The renovated office returns annual rent of $1.7 million.

CBRE marketed the building for its potential to be redeveloped or converted into a hotel or residential complex.

Josh Rutman, Mark Wizel, Lewis Tong and Kiran Pilai closed an expressions of interest campaign for the property in early March.

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.

PSC’s East Melbourne office (outlined) is next door to 100 Wellington Parade – a property the Royal Australian College of General Practitioners bought for $25 million in 2012, and which was once Melbourne Water’s headquarters.

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.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco
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