Architects Toby Ewert and Will Leaf, with Ed Farquharson, the owner of developer, Moda, have sold a South Melbourne office for $10.2 million – more than $1 million over expectations.
The four-level, 1078 square metre building at 49-51 Stead Street cost the businessmen $6 million last year.
Following a major renovation, the office was listed for sale last month with a leaseback to Mr Ewert and Mr Leaf’s design firm, Ewert Leaf.
Based on the annual rental return ($556,348), the investment is selling on a 5.45 per cent passing yield.
A lease to the vendors expires in 2025.
The office occupies a 406 sqm plot zoned Commercial 1, which would allow for residential use.
The $10.2 million sale price values every square metre of land at $25,123.
Mr Ewert, Mr Leaf and Mr Farquharson acquired 49-51 Stead Street from former Hawthorn footballer Geoff Angus who paid $2.5 million for it in 1999.
Ewert Leaf previously owner-occupied a nearby South Melbourne office at 87-91 Palmerston Street which sold for $3.5 million last March – coincidentally via the same three Colliers International agents.
Mr Ewert and Mr Leaf are behind interactive property and data website, Landchecker, which over the past 24 months has received millions of dollars in capital from both the RACV and businessman, Ruslan Kogan.
Industry website realestateview.com.au in March announced a digital partnership with Landchecker – a program which harnesses publicly available and government information.