Hawthorn home to Big4 fetches $15m

The Zagame family in 2019 acquired two Hawthorn offices adjoining commercial property it owned to create an L-shaped super-site.

The Hawthorn office home to Big4 Holiday Parks has sold between local investors.

The price for 313-317 Burwood Road – over $15 million – reflects a sub c4.8 per cent market yield.

Based on its passing rent, the return is 3.4pc.

The Minogue family recently sold 108-110 Church Street, Hawthorn.

The deal comes in the week the Minogue family sold a slightly bigger office at 108-110 Church Street in the suburb for just under $20m.

313-317 Burwood Road

On a 1185 square metre Commercial 1 zoned block, 313-317 Burwood Rd was marketed for its development upside.

With 1885 sqm of renovated lettable area over four floors, it is 86pc occupied to Big4, Leighton O’Briens, Fuse Recruitment and HID Accountants; the Weighted Average Lease Expiry is 4.1 years.

Also with frontage to Lynch St, the asset contains 68 car parks over two basement floors.

A major capital investment affecting lifts and air conditioning was recently completed (story continues below).

The Burwood Road office (marked) is near Glenferrie train station.

The Glenferrie Rd retail strip is walking distance.

Fitzroys marketing agents David Bourke, Chris James and Shawn Luo said the property sold within 36 hours after the close of an expressions of interest campaign.

“Buyers were all very comfortable taking on the small leasing risks in the property,” Mr Bourke said.

“The purchaser…had been looking to get into the Melbourne office market for several years, and this asset ticked all the boxes in terms of location, profile and ideal positioning in the current market environment,” he added.

“Hawthorn has emerged as a ‘one to watch’ among Melbourne’s commercial markets, situated in an inner-suburban sweet spot that is currently attracting tenants from central locations and further out in the suburbs,” according to the executive.

It is in this pocket of the suburb where the Zagame family in 2019 paid $55m for a four level office, which was for public sale, and $8.8m for an adjoining commercial building – which wasn’t on the market – to amalgamate with two assets it owned creating an 8189 sqm battle-axe shaped block with significant development upside.

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Marc Pallisco

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