One of the newest buildings in Dandenong – a suburb which was for generations marketed as Melbourne’s second city – has sold for $17.3 million.
The office at 1-9 Dandenong Street (pictured, top) is fully leased to the state government as the metropolitan Multidisciplinary Centre (MDC) in Victoria.
It was built four years ago after the government pre-committed to about 80 per cent of it for a ten-year term (it later extended its occupancy to take out the whole building).
Based on the annual rental return of $1,057,300, the asset is trading on a passing yield of 6.1 per cent. Dawkins Occhiuto director Walter Occhiuto listed the property in mid-July via an expressions of interest campaign which closed on August 23.
Rising three storeys, with 2846 square metres of lettable area and 95 car spaces, 1-9 Dandenong Street occupies a 3134 square metre block on the south-east corner of Cheltenham Road, not far from an Eastlink entrance. The Dandenong Central Activity District is also in the vicinity.
According to its website, MDCs “co-locate a range of partner agencies in the one building to provide a victim-centred, integrated and holistic response to victims of sexual crime and child physical abuse”.
There are six MDCs in Victoria. The others are in Bendigo, Geelong, Mildura, Morwell and Seaford.