Property Development

Office in strategic South Melbourne street sells on 2.26 per cent yield.

Office in strategic South Melbourne street sells on 2.26 per cent yield.
Written by The ReReport
As seen in the Source link, written by realestatesource.com.au on 2019-07-12 01:41:09

3-7 Raglan Street, South Melbourne, offers city skyline view security.

A small office in South Melbourne’s strategic Raglan Street has sold for $3.35 million reflecting a land rate of $11,833 per square metre.

The 300 sqm Commercial 1 zoned holding at #3-7 contains a triple-storey building with 780 sqm of lettable area, and six tandem-style car parks.

Buildings on the south side of Raglan Street, like this one, provide city skyline view security over low-rise houses across the road which can’t be replaced with tall buildings.

Last August we reported, exclusively, that the neighbouring office, 9-17 Raglan Street, sold to a China-based investor for $14 million – a 54 per cent uplift on the $9.1 million price the vendor paid in 2016.

Also in 2016, local developer Michael Buxton paid $9.1 million for a four-storey commercial building next door to that one, at 19-25 Raglan Street.

Knight Frank’s Danny Clark, Andrew Hansen and Gellie Mendes picked up the listing of 3-7 Raglan Street last year after the agency sold #9-17.

The $3.35 million sale price reflects a low passing yield
of 2.26 per cent. It is selling to private investor.