Forza flips ex-Salvation Army HQ after revamp
EXCLUSIVE
Forza Capital has sold a prominent east Melbourne office after 16 months.
The Liechtenstein based Hilti Family Office is paying $24.5 million for 3-7 Hamilton Street, Mont Albert – for 13 years before 2007, Salvation Army’s headquarters, nowadays known as the Mont Albert Collective.
The deal reflects a 7.1 per cent net passing yield.
Forza, on behalf of the Forza Mont Albert Fund, paid the family of late Skilled Engineering founder, Frank Hargrave, $15.5m before refurbishing and filling a 71pc vacancy.
“Our syndicate of high net worth investors have enjoyed a total investment return of 1.23 x over 16 months or an internal rate of return of 18.3pc,” Forza founder Ashley Wain, said.
Lemon Baxter’s Thomas Blencowe, Hans Fan and Paul O’Sullivan brokered the deal.
The same agency also sold the building to Forza and managed the subsequent leasing campaign.
Major, securely leased office
With 3508 square metres over three floors – and a basement with 114 car parks – occupiers at 3-7 Hamilton St include Waterman Workspaces, Haines Muir Hill (HMH), Assurify, Ebix Australia and Rubicon.
The weighted average lease expiry is just over seven years.
Rents are fixed to rise a blended 3.28pc pa, over that period, the agents said.
“The capital program included roof, mechanical and electrical services, new bathrooms, lift upgrades, new fit out and high quality end of trip facilities,” according to the executives.
The NABERS energy rating is now 4.5 star, they added.
Longer term, the 1573 sqm Commercial 1 zoned block near the two year old Union station (which replaced Surrey Hills and Mont Albert stops) can accommodate alternative product including residential.
Office sells again
The Salvation Army held the property between 1994-2007.
MaxCap and Troon Group held it later – selling to Mr Hargrave’s Larkfield Group in early 2021, for $27.85m.
The incoming owner, buying under the name Venncap, will be able to claim depreciation benefits for tax, the agents said.
Mont Albert, which shares the same postcode as Surrey Hills, is about 12 kilometres from town.
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