A Melbourne based investor has paid $1.425 million on an extraordinary 2% yield for an office/warehouse property at Footscray, VIC.
A Melbourne based investor has paid $1.425 million on an extraordinary 2 percent yield for an office/warehouse property with significant development upside at Footscray in Melbourne’s inner west.
According to selling agents, Savills Julian Heatherich and James Lockwood, the 112 Buckley Street property attracted very strong interest from investors, developers and owner occupiers looking to take advantage of Footscray’s close proximity to the CBD.
“This was an exceptional opportunity which offered a prime development site with the potential for a six level building and an existing tenancy providing holding income. Ultimately it was sold to a buyer who will hold as a long term investment,” Mr Heatherich said.
The property, comprising a 435 square metre office and warehouse on a 646 square metre site with on-site parking, sold subject to a monthly lease to an auto repair business returning $28,560 per annum net.
The Activity Centre Zone encourages a mixture of uses in an intensive development precinct close to all amenities including public transport, schools and shopping and only five kilometres from Melbourne’s CBD.
Mr Lockwood said the sale highlighted the high level of activity in the Footscray commercial property market recently and especially along Buckley Street.
“Footscray is one of the most rapidly growing suburbs in metropolitan Melbourne and is currently experiencing unprecedented levels of residential and commercial development flowing from Victorian State Government and Maribyrnong City Council policies designed to promote this precinct as an ideal city fringe location,” Mr Lockwood said.
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