A showroom warehouse in Moorabbin, in Melbourne’s south east, has sold to a Chinese investment group for $6.5 million.
The sale price of 244-248 Chesterville Road reflects a 5.5 per cent passing yield.
It also represents a solid capital gain for the vendor which paid $3.7 million in 2015.
The 4732 square metre building on a 5048 square metre site was offered with a new five year lease to Remarkable Furniture.
With options, the occupier can stay on until 2044.
The modernised property, with a new roof, is surrounded by 57 car parks.
The pocket of Moorabbin will soon become a development hot spot – with local builder Pellicano Group set to start constructing offices at nearby 260-280 Chesterville Road.
Between these two holdings, Up Property is replacing the former Philip Morris factory at the north east corner of Cochranes Road with Morris Moor – a mixed-use employment and entertainment precinct.
In June we reported that Collingwood based brewer, Stomping Ground, would join efm Logistics Services, Clik Collective, Little Lane Learning and Schotts Home Emporium, as a Morris Moor occupier.
Another business park is mooted at 213 Chesterville Road.
Ten months ago, an industrial developer paid $14 million for Moorabbin’s Melbourne’s Cheapest Cars dealership, on 2.1 hectares, at 648 South Road.
According to 244-248 Chesterville Road selling agents, James Glen, David Garfield and Matt Nichols, “the purchasers were attracted to the gentrifying happening in Moorabbin and therefore the potential upside the property offered through re-positioning of the use in the future”.
The suburb is about 15 kilometres from the CBD.