The most highly regarded office building in Melbourne’s city fringe, 75 Dorcas Street, has hit the market through Colliers International’s Nick Rathgeber and Leigh Melbourne, with price expectations in excess of $155 million.
Following a recent lease renewal to ANZ and a new lease to food giant Mondelez, Sachensfonds, who acquired the property in 2008, have elected to offer the property for sale.
Originally pre-committed to BMW and ANZ and completed in 2002, 75 Dorcas Street is one of the best quality buildings within 2km of the CBD, with a total NLA of 23,811sqm. As part of ANZ’s lease renewal, capital expenditure in excess of $15million has been invested in the building including plant replacement and accommodation upgrades. The resulting quality of the space attracted Mondelez, who recently committed to 4,567sqm, moving from the South Wharf Office Tower. The building is being offered with a weighted average lease expiry in excess of five years.
“There is a deep demand for modern, well leased office buildings that offer a higher return profile than those located in the CBD. No building in Melbourne better meets this profile than 75 Dorcas Street," Mr Rathgeber said.
Abutting the St Kilda Road precinct, 75 Dorcas Street is the most modern institutional grade office building in the immediate vicinity. The building occupies a huge site of 9,632sqm, providing three street frontages totalling approximately 300sqm of prime exposure. The large floor plates of over 3,000sqm surround a stunning atrium providing an abundance of natural light throughout the building.
“The building has a proven history of retaining its original tenants whilst attracting big brands from nearby office buildings, such as Mondelez," Mr Rathgeber said.