Melbourne developer Cadence, directed by Charlie Buxton, the son and nephew of veteran builders Andrew and Michael Buxton, has paid $6.5 million for new company headquarters.
The vendor, a private investor, held the asset for more than 20 years.
The property (pictured top and below) comprises two adjoining office-warehouses with a combined building area of 1625 square metres and a total of 18 car parks.
One of the buildings is rented on a short-term basis to tech firm SXiQ. The other is occupied by timber exporter Aushang International, which has more than three years left to run on a lease.
Cadence plans to move into the SXiQ space, with a view to building a new office on the block once Aushang International vacates.
The 1650 sqm parcel, zoned Commercial 2, sits at the western edge of the Hawthorn East employment precinct, near Gardiners Creek and the Toorak Road/Monash Freeway intersection.
Last month we reported that Melbourne Knights Soccer Club coach Tony Vrzina sold a single-storey warehouse in this area. The much smaller property, 31 Hall Street, traded for $2.7 million to an investor.
Other occupiers in the area include Kookai, which has headquarters at 8-14 Hall Street. The Bunnings National Support Centre is on Cato Street, a block away.
Cadence is currently based at nearby 785 Toorak Road, Hawthorn East, a building developed by Folkestone in 2000 and offloaded by IOOF Holdings Limited for $24.65 million in November, 2017 – the month and year agents say Melbourne commercial property values last peaked.
Last month we reported that Cadence banked a substantial capital gain subdividing and flipping a Mill Park industrial property it acquired last year.
In mid-2016, Cadence paid Spotless Group $10.5 million for a 4836 sqm holding at 18 Victoria Crescent, Abbotsford, settling in six days.
This block is now earmarked to make way for an office.