A trophy office at Kew Junction – considered one of Melbourne’s most tightly held major commercial hubs – is set to hit the market.
The three level A-grade building at 85-87 High Street is expected to sell for between $17-$18 million.
Leased to Hacer Group until June, owner occupiers are anticipated to be prevalent, according to Vinci Carbone’s Joseph Carbone, who is marketing the asset with Frank Vinci and Gorman Allard Shelton’s Peter Bremner, Tom Maule and Jonathon McCormack.
“We have already received interest from private family offices and the medical sector wanting to secure a commercial freehold to occupy,” he added.
Investors and developers which might exploit the Commercial 1 zoned 1846 square metre plot with a taller project are expected to look in too.
The listing comes two years since Bank Australia sold its former smaller headquarters at 222 High St, for over $15m.
The state government is also expected to at some stage offer the 2.7 hectare Denmark St site occupied by VicRoads, which recently relocated functions undertaken there to Ringwood.
Golden opportunity: agents
With 2286 sqm of area and 65 basement car parks, Mr Carbone said 85-87 High Street is a “golden opportunity” in a region scarce of office supply (story continues below).
“The standalone property is perfectly positioned on the west side of the road, only metres from the Kew Junction with High St as the source of shopping and eateries, with an array of restaurants, cafes, retail outlets and facilities,” he added.
“In addition, the property is being offered with planning approval for the development of a 10 storey building above a three level basement accommodating 118 apartments plus café and office suite,” according to the executive.
That permit could be amended as an office tower or a mixed use project comprising residential.
“There are only about 20 freehold buildings in the Kew Junction and typically a Kew office building only transacts about once every three years,” Mr Bremner said.
“Consequently we expect there to be a lot of pent-up demand from buyers seeking a high quality corporate headquarters in this tightly held precinct,” he added.
“Occupiers are always attracted to Kew by the unique combination of leafy streetscapes, the close proximity to the CBD and major arterials like the Eastern and Monash freeways, the prime Kew Junction address, nearby quality retail amenity and the immediate location being home to some of Melbourne’s most affluent residential homes and private schools,” according to the agent.
Kew is six kilometres east of town.
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