Hawthorn office sells for near-$9 million: sources

EXCLUSIVE

A Melbourne investor is speculated to be paying close to $8.8 million for a renovated Hawthorn office on a Commercial 1 zoned site with redevelopment upside.

The 950 square metre double-storey building, with 19 car parks, sits on a 1039 sqm plot at 5-7 Guest Street, walking distance to the Glenferrie Road retail strip, Glenferrie train station and Swinburne University Hawthorn campus.

The renovated double storey office at 5-7 Guest Street contains 950 square metres of area.

It is fully leased until 2025 to long-term tenant DBM Consultants, which then has a five year renewal option.

However, under the terms of the rental agreement, the incoming owner has a provision to end the tenancy in 2024 should the office be demolished.

Based on the annual rent DBM pays ($362,000), the property is selling on net passing yield circling 4.2 per cent.

Savills Clinton Baxter, Glenn Ye and Dorothy He with GormanKelly’s Samuel Torrance, Aldo Galante and Nick Breheny, declined to comment about the 5-7 Guest Street campaign.

DBM Consultants’ lease at 5-7 Guest Street expires in 2025. However the incoming owner can end it a year earlier, if the office is to be demolished.

Last June, Mr Galante sold the low-rise office on a 527 sqm plot at 3 Guest Street, next door (pictured, below), for $4.4 million.

The sites are about five kilometres east of the Melbourne CBD.

Last June, the neighbouring 3 Guest Street, on a 527 sqm plot, sold for $4.4 million.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco
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