Former bookmaker and Betstar founder Alan Eskander has sold a Southbank office property for $5.85 million – more than double what he paid for the site in 2013.
The 584sqm property at 34-36 Market Street is located in South Melbourne’s eastern business district.
CBRE Victorian Development Sites’ David Minty, Mark Wizel, Nathan Mufale and Chao Zhang managed the sale process on behalf of Mr Eskander.
The transaction represented a land rate of more than $10,000 per square metre with a building rate in excess of $13,000 per sqm.
Mr Minty commented: “Unprecedented tenant demand, low vacancy rates, rising rents and yield compression are collectively creating the emergence of new office markets in and around Melbourne’s CBD.
“The rapid popularity of commercial 2 zone sites in 2017 surpassed expectations, with land rates for traditionally light industrial uses now attracting premiums which are almost rivalling that of zoned sites suited for residential development.”
Mr Mufale said South Melbourne was one of several suburbs growing in popularity.
“Suburbs such as Richmond, Collingwood, Cremorne, Abbotsford and South Melbourne are fast becoming hot spots, popular with both local and offshore developers for the delivery of new office developments.”
The site is located nearby 81-109 Moray Street in South Melbourne, which the Deague family acquired recently for more than $24,650,000. A seven level commercial office building with 15,000sqm of NLA has been proposed for the site.
The 584sqm property at 34-36 Market Street is located in South Melbourne’s eastern business district.
CBRE Victorian Development Sites’ David Minty, Mark Wizel, Nathan Mufale and Chao Zhang managed the sale process on behalf of Mr Eskander.
The transaction represented a land rate of more than $10,000 per square metre with a building rate in excess of $13,000 per sqm.
Mr Minty commented: “Unprecedented tenant demand, low vacancy rates, rising rents and yield compression are collectively creating the emergence of new office markets in and around Melbourne’s CBD.
“The rapid popularity of commercial 2 zone sites in 2017 surpassed expectations, with land rates for traditionally light industrial uses now attracting premiums which are almost rivalling that of zoned sites suited for residential development.”
Mr Mufale said South Melbourne was one of several suburbs growing in popularity.
“Suburbs such as Richmond, Collingwood, Cremorne, Abbotsford and South Melbourne are fast becoming hot spots, popular with both local and offshore developers for the delivery of new office developments.”
The site is located nearby 81-109 Moray Street in South Melbourne, which the Deague family acquired recently for more than $24,650,000. A seven level commercial office building with 15,000sqm of NLA has been proposed for the site.
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.