Investment-grade Asset with High-density Residential Potential Sold Prior to Auction

An investment-grade asset with high-density residential potential in the eastern suburb of Blackburn has sold for more than $7 million, reflecting a yield circling 4.8 per cent.

The double-storey office¬†at 10-12 Chapel Street, Blackburn, marketed as “land land land”returns annual rent of $341,344.

However, being on a 1,798 square-metre parcel, so potentially able to yield more than one high-density complex, agents Stephen Gorman and Jonathon McCormack of Gorman Commercial promoted the property to developers, who in the past 24 months have focused on Melbourne’s suburbs, arguably over its city, for sites like this in walking distance to train stations. Leases in the building expire in 2020. This property sold before an auction scheduled for May 3.