An investment-grade office in Kew, with significant redevelopment potential, has sold off-market for $19 million.
The three-level building at 79-83 High Street was constructed in 1993 and includes 112 undercover car parks and 3361 square metres of office area.
Split into 19 strata lots, it sold in one line.
The building occupies a 3760 sqm block zoned Commercial 1, making it appropriate for a landmark, high-density residential redevelopment.
It is positioned within a precinct classified as the Kew Junction Major Activity Centre – next door to the distinctive black Kew Junction Tower and across the road from the ex-Q Cars dealership, now an apartment building – which at 12-levels, is the suburb’s tallest.
The new owner, a local private investor, is proposing to refurbish the building and common areas and possibly add an extra floor of space.
Last month we reported a 538 sqm site in this pocket, 1 Studley Park Road, sold to Prince Corporation permit-ready for a nine-level residential building.
Commercial developers also showed interest in 1 Studley Park Road, indicative of the pent-up demand for modern offices in the blue-ribbon area.
“Suburban office market transactions across Melbourne again cracked the $1 billion mark in 2018,” Mr Burns said. “Melbourne’s inner-eastern and CBD fringe markets continue to attract the attention of local and offshore investors alike, as vacancy levels tighten and rents increase”.
Mr Burns said Melbourne’s inner-east market has been one of the city’s strongest white collar employment sectors “as businesses look to capture a growing generation of workers who desire to live and work across the inner suburbs”.
The broker said nearly 16,000 medium and high-density dwellings are expected to be completed in suburbs around the Kew Junction by 2041.
Mr Kelly said 79-83 High Street is metres from the busy intersection “and close to major freeways, multiple tram, bus and train routes, and is also close to the popular Glenferrie Road, Hawthorn, retail and hospitality precinct which is a further drawcard for those looking to work in inner city locations”.
The building’s “highly accessible location” and “proximity to retail, lifestyle and hospitality offerings” also piqued investor interest for the asset.