The Smile Designs Dentistry centre, built into a historic home in Melbourne’s ritzy Hawthorn East, has sold for $1.9 million – a deal which reflects a 3.9 per cent passing yield.
Six bidders competed for 368 Tooronga Road before a large crowd at auction last week.
The 147 square metre building occupies a 520 sqm site zoned Neighbourhood Residential opposite the suburb’s valuable commercial precinct.
The auction was also streamed online for bidders who couldn’t attend.
“The affluence and subsequent underlying land values of the Hawthorn East location was a major drawcard for investors,” Mr Peluso said. “When coupled with impressive and highly valuable improvements as you would expect from a dental clinic, the opportunity really resonated with a large number of groups and for good reason”.
The property is leased to Smile Designs Dentistry for 10 years, with options. The practice has been based at the site for more than 20 years.
Mr Tat said the property “will continue to benefit from its proximity to some of Melbourne’s most elite suburbs, including Malvern, Toorak, Kew, Glen Iris and Camberwell”.
“These are all flagship destinations, well known to overseas investors so clearly pointing out the property’s proximity to these suburbs aided in capturing buyer attention.”
Last month in the exclusive eastern suburb, which carries a median house price of $1.9 million according to realestate.com.au, a historic dwelling at 368 Auburn Road was controversially razed to make way for a 14-unit apartment complex.
After approving that the home be demolished last year – the City of Boroondara council granted interim heritage protection in April.
With a legal loophole making interim heritage protection orders powerless in Boroondara – the site owner started knocking down the mansion late last month.
The council then wrote to planning minister Richard Wynne, who could have intervened – but it was too late.
“The council had ample time to request state intervention but instead has sat on its hands until bulldozers are out the front,” Mr Wynne noted of the Auburn Road case.
In May Mr Wynne intervened to protect another home in the street, Currajong House, which was also facing demolition.
Newmark Capital – the owner of South Yarra’s Jam Factory – paid about $63 million for the Tooronga Village shopping centre in July – as we reported here.
Last month we reported that a family sold a 3460 square metre site in the suburb – comprising of four red brick homes – for $11.7 million.