A rare whole-floor office investment in the heart of South Yarra has hit the market, with the sale expected to attract private investors seeking secure income and long-term capital growth in one of Melbourne's most tightly held commercial precincts.
Level 4, 5 Claremont Street is being offered for sale via International Expressions of Interest and comprises 522 sqm* of office accommodation with an exceptional 14 on-title car parks; a scarce offering within South Yarra.
The property is fully leased to two established technology businesses, generating annual net income of $335,386.38 and offering an attractive passing yield of approximately 7.5 per cent.
The office is anchored by Orikan Australia, a long-standing technology partner to the City of Stonnington, alongside software developer Arrow Research Corporation, with both tenants recently renewing their leases and holding further options.
For sale through Jack Cooper and Valerie Tang of Cushman & Wakefield, the campaign comes as investors continue to target well-located office assets offering secure cashflow, quality tenants and the potential for future owner-occupation in Melbourne's established city-fringe markets.
Jack Cooper of Cushman & Wakefield said the property was expected to appeal to private investors, family offices, self-managed super funds and syndicates looking for defensive investments with strong long-term fundamentals.
"Whole-floor office investments of this quality are exceptionally difficult to secure in South Yarra, particularly those offering diversified income, recently renewed leases and significant on-title parking.
"We expect interest from private investors seeking stable income, as well as buyers looking to secure a long-term foothold in one of Melbourne's most desirable commercial locations, where supply remains tightly constrained."
Located just moments from Chapel Street, Toorak Road and South Yarra Station, the property benefits from immediate access to Melbourne's premier retail, hospitality and transport amenity, while maintaining excellent connectivity to the CBD.
Valerie Tang of Cushman & Wakefield said the property's flexibility and location would underpin broad buyer appeal.
"South Yarra continues to outperform as an office market because it offers businesses an exceptional working environment, combining premium amenity with outstanding transport connectivity.
"The combination of a whole-floor office, secure technology tenants, abundant parking and future flexibility to occupy or reposition makes this a compelling investment opportunity that rarely becomes available in this precinct" she said.
The property is being offered for sale via International Expressions of Interest closing 12pm (AEST) Thursday 10 September through Cushman & Wakefield.
