Occupier beats developer for Eaglemont office

The office is near the Austin Hospital and Burgundy Street retail strip.

Biomedical equipment and software creator AXXIN is paying $16.6 million for an Eaglemont office opposite Yarra Flats Park, to occupy.

A low rise, 3217 square metre building at 677 The Boulevard is leased to Berry Street for three more years.

The 9020 sqm Commercial 1 site at the south west corner of Banksia Street could make way something taller, with residential and commercial product.

Colliers’ Hamish Burgess, Trent Hobart, Peter Bremner and Joe Kairouz were the agents.

Eight first round offers came in with a deal agreed two days before Christmas.

The price reflects a 6.36 per cent yield.

AXXIN presently rents a little closer to town at Fairfield, opposite the former Amcor factory, now the Yarra Bend housing estate (story continues below).

Sale to occupier not unexpected: agents

“We saw good engagement from developers seeking a blue-chip suburban location for a project targeting downsizers and occupiers,” Mr Hobart, who manages the agency’s residential service line, said of the Eaglemont campaign.

Its sale to an occupier in light of the lease and development upside wasn’t unexpected however – due to relatively cheap finance.

“The transaction highlighted the strength of owner occupiers in the Melbourne suburban office markets where the interest rate remains at historic lows,” Mr Bremner – national sales director – added.

About 10 kilometres from the city, Eaglemont and neighbouring Ivanhoe East are arguably Melbourne’s most exclusive northern suburbs.

AXXIN is expected to move into the building at 677 The Boulevard in 2024.

The office includes a basement car park.
Part of the office facing Yarra Flats Park.
The office contains 3217 square metres of lettable area.
AXXIN has paid $16.6 million for 677 The Boulevard.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.