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.
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.
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.