Knight Frank director Paul Henley is believed to have negotiated the sale, this time around, but declined to comment when contacted by BusinessDay.
At $15 million, the sale price reflects a yield of just over 9 per cent, based on a speculated fully leased rental income of about $1.4 million. It’s estimated about 5 per cent of the multi-tenanted building is vacant.
The strong price also signals that commercial property values in some parts of Melbourne are now higher than they were, at the last peak.
The Jamieson Street building has not had any major renovations since it was purchased by GDI.
Cheltenham is wedged between the seaside hamlets of Mentone, Beaumaris, Black Rock and Sandringham – dividing those suburbs from the Moorabbin Airport, and industrial estates in Heatherton and on the outskirts of Dandenong.
Earlier this year, interests associated with education service provider Holmesglen were reported to have bought a prominent site at 300 Bay Street, which could make way for a mixed use village of apartments, shops and a school.
Boutique builder R.Corporation has also purchased a residential development site in the area, at 96 – 116 Cavanagh Street for about $20 million, while Sydney-based Charter Hall has started marketing townhouses at the former Nylex complex, on the corner of Warrigal Road and Oak Avenue. It acquired that site in stages over the last few years, outlaying about $10 million.