A prominent Cheltenham building home to New Balance - apparel suppliers and sponsors of AFL premiers Melbourne - and registered NDIS provider Ability Plus Disability Services has sold for $6.4 million as suburban commercial assets continue to attract investors and owner-occupiers.
The sale price reflected a passing net yield of 5.3%, and the buyer intends to hold the property as an investment.
Talbot said the competitive EOI process generated interest from investors and partial owner-occupiers.
“Buyers were attracted to the property’s flexibility to occupy or re-lease a portion of the building while enjoying strong rental income from an exceptional tenancy profile in New Balance and Ability Plus, as well as the property’s highly accessible location and abundance of car parking,” he said, adding that the site offers easy car access to Beach Road and Nepean Highway.
New Balance occupies 50% of the building, and both tenants have five-year leases with options to July 2028. The premises have been immaculately fitted out with suspended ceilings, open plan and partitioned layout, quality amenities and ducted air conditioning. Zoned Commercial 2, the property has 70 on-site parking spaces.
“As Melbourne has reopened we’ve seen a strong preference from people heading in to work for access to on-site car parking,” Talbot said.
The site is located in the heart of the 100-hectare Bayside Business District, a Bayside City Council rezoning scheme completed over 10 years ago now home to around 400 businesses, which Talbot said was also an attraction for potential buyers.
“The district has become one of the premier commercial and semi-industrial precincts in Melbourne’s south-east, and continues to offer excellent growth opportunities,” he said.
New occupiers include Aldi and Dan Murphy’s, with demand for retail and warehouses underpinned by developments including the Belrose Precinct, the Chandos Street office and industrial project, and the proposed Park Village master-planned community that will bring around 1,050 new dwellings to the immediate area.
The area offers premier lifestyle amenities including Westfield Southland shopping centre, home to nearly 380 retailers, including major operators Myer, David Jones, Kmart, Target and more, while the Royal Melbourne Golf Club, Port Phillip Bay, plus a number of allied health practices and local primary and secondary schools are in the immediate vicinity.
“The quality local lifestyle amenity and highly-accessible nature of the area have undoubtedly contributed to the demand for commercial accommodation, and are driving forces behind its future growth and development prospects,” Fisher said.