The deal provides a clear pricing marker for prime, fully leased assets outside the CBD at a time when much of the broader office market remains under pressure.
Completed in 2023, the 12-level A-grade development at 505 Toorak Road spans 13,095 sq m on a 2,661 sqm site and is 100 per cent occupied.
The asset was fully leased prior to practical completion and has maintained a tenant waitlist, an outcome that stands in contrast to elevated vacancy levels across parts of Melbourne’s CBD and fringe markets.
The asset was sold through Cushman & Wakefield’s Daniel Wolman, Nick Rathgeber, Oliver Hay, Leigh Melbourne and Leon Ma.
According to Daniel Wolman of Cushman & Wakefield, the depth of buyer interest reflected the continued divergence between prime and secondary stock.
“This is arguably one of the best mixed-use commercial buildings in the country. The design quality, ESG performance, strength of covenant and the Toorak catchment combine to create a genuinely scarce offering.”
“In the current environment, capital is highly selective. Investors are targeting long-WALE, fully leased assets in blue-chip locations, and they are prepared to price that certainty accordingly.”
“While secondary office continues to trade at discounted pricing, stock with strong income profiles has shown greater resilience, particularly in tightly held village-style precincts”.
Toorak remains one of Melbourne’s most exclusive suburbs, with household incomes and professional employment levels well above metropolitan averages. For occupiers, the appeal extends beyond proximity to the CBD to include amenity, lifestyle and brand alignment.
“More broadly, this transaction reinforces a theme increasingly evident across capital markets: liquidity has not disappeared, but it has concentrated around quality”.
In a separate transaction, with Cushman & Wakefield The Spotlight Property Group also finalised the sale of a vacant site at 402 Chapel Street, South Yarra.
