Colliers International to auction high-performing corner office block in Hawthorn East
A securely leased office block in Hawthorn East generating more than $440,000 per annum will go under the hammer in June, as buyers scramble for commercial investment assets in Melbourne’s inner-eastern suburbs.
The stand-alone two-storey building at 425-427 Riversdale Road is leased to The SEDA Group on a five-year term, plus options, which commenced in January 2017.
Colliers International’s Peter Bremner, David Minton and Andrew Ryan have been appointed to publically auction the property on June 16, which is expected to sell for more than $7.5million.
“This securely leased freehold office is an outstanding investment opportunity for the array of future options it offers,” Mr Bremner said.
“There is versatile accommodation across two levels, which is currently fully occupied by The SEDA Group – but in time, with amenities on both floors and dual access points, the configuration of the building could allow for multiple tenancies.”
Mr Ryan said a demolition clause in the lease contract required 12 months’ notice be given to the tenant, which could be called upon from January 1, 2019.
“With such flexible lease terms and the coveted Commercial 1 zoning, the property is likely to appeal to developers and owner-occupiers, as well as commercial investors scouring the inner-eastern suburbs,” he said.
“Refurbishment, repositioning or a complete mixed-use redevelopment are among the future upside possibilities, subject to council approval.”
The 1,069sqm property has three street frontages, including a rear right-of-way, and encompasses two certificates of title comprising a net-lettable area of 1,179sqm. There is parking for 30 cars on site, including six undercover spaces.
Mr Minton said the high-exposure location on the corner of Riversdale Road and Russell Street, within 250 metres of Camberwell Junction, was another key selling point.
“There is prompt access to the Monash Freeway and a multitude of retail amenity and public transport options at the doorstep,” he said.