Under-utilised Box Hill office sells for c$22 million

A low-rise office on a central Box Hill site marketed for its “significant development potential” is selling for approximately $22 million.

The fully-leased investment, 19-23 Prospect Street, returns annual rent of $1.37 million – meaning the deal is being struck on a passing yield of around 6.2 per cent.

Over three levels, the building (pictured, top) offers 150 basement car parks and 4304 square metres of office space split into eight tenancies. The weighted-average-lease-expiry is 3.56 years.

The site (shaded) relative to central Box Hill developments.

Near the suburb’s train station and Box Hill Central, the office sits on a 1999 square metre block zoned Commercial 1.

The property is surrounded by several major skyscrapers of more than 30 storeys and was marketed for its potential to make way for another.

Colliers International’s Andrew Ryan, Peter Bremner, Alex Browne and Racheel Clohesy with GormanKelly’s Aldo Galante, Mario Nobrega and Robert Kelly marketed 19-23 Prospect Street.

Box Hill, about 14 kilometres east of the CBD, has been considered a satellite suburb by planning minsters of both major governments, for decades.

High rise development has intensified since 2015 when Grocon started constructing a 20-storey building for the Australian Taxation Office at 913 Whitehorse Road.

Artist’s impression of Whitehorse Towers, at 850 Whitehorse Road.

The suburb’s tallest building, a residential tower at 850 Whitehorse Road, soars 36 storeys, part of the Deague Group’s Whitehorse Towers complex.

Last October, a Hong Kong developer made his first Australian purchase, acquiring the former St Paul’s Lutheran Church at 711 Station Street for $29.5 million.

In the same month we also reported the Loyal Orange Institution of Victoria sold a 1.2 hectare development site at 325 Station Street, Box Hill South, for about $15 million.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.