Cabrini Hospital has sold a 1970s block of flats listed in the week Australia’s social distancing measures were introduced.
The double storey complex in Melbourne’s exclusive Glen Iris traded for $3.32 million following an auction-converted-expressions of interest campaign.
Aston Commercial’s Liam Rafferty said 10 written offers came in for 147 Tooronga Road – the agent noting this reflects more than $30 million in the market seeking a property investment of this nature.
On a 726 square metre block, the sale price values every square metre of the General Residential zoned land at $4560.
The holding is nearly adjacent to Viva Street Reserve.
Cabrini has occupied the flats for nearly 50 years as short-stay accommodation for Missionary Sisters, their families, and relatives of travelling patients.
Four of the units are configured with two bedrooms while the balance have three.
The deal prices each of them at $533,333.
Sold to a passive investor
The campaign Mr Rafferty ran with colleague Fred Nucara targeted developers and passive investors.
In the end after both groups contested, the buyer was the latter.
Based on what Aston Commercial said the potential fully leased annual rental return of the investment would be if each flat was renovated ($150,800) – the deal is being struck on a c4.5 per cent gross market yield.
Glen Iris is about 10 kilometres south east of the city centre.
In February, we reported Cabrini Health signed a 2000 square metre office lease deal for a Hawthorn East building being co-developed by former Collingwood footballer Paul Tuddenham near Camberwell Junction, about five kilometres north of Glen Iris.