Strong cashflow offering with government and national tenants comes to market in the Monash Innovation precinct

700 Springvale Road Mulgrave has had a strong history of occupancy, being 89% leased, and offers a strong cashflow investment, having undergone a full refurbishment.

A fully refurbished, six-level office building in the heart of the Monash Innovation Precinct is expected to attract buyers looking to take advantage of consistent activity within the Monash leasing market and the secure cashflow of the multi let commercial property.

The 700 Springvale Road property comprises a high-quality office building with 6,825 square metres of NLA including natural light on four sides and 344 secure basement and at-grade car spaces. The 9,129 square-metre corner site, zoned Special Use, has a combined frontage of 185 metres including 82 metres to Springvale Road and 103 metres along Springvale Road Service Road.

Having recently undergone a full refurbishment costing over $5 million, the 4-star NABERS-rated property also boasts a first-class lobby, landscaped gardens and near-new amenities on each floor.

The property is currently leased at 89 per cent occupancy with eight tenants, including Monash Health, CMP and Arthur J Gallagher, on a WALE of 2.3 years, and has an estimated fully leased net income of $2.57 million. The central core design and natural light on all sides makes it a particularly attractive and flexible leasing option for businesses wishing to secure occupancy in the locale.

According to Tim Carr of JLL’s Office Investments team, who is marketing the asset along with Josh Rutman and MingXuan Li, the property will appeal to buyers based on its exceptional investment fundamentals. It also comes with a large allotment, in a prime location, offering future expansion potential.

“The owner has benefited from strong occupancy since they acquired the building in 2014, evidenced by the quality national and government tenant covenants within the building, and current 89% occupancy and diversified lease expiry profile that de-risks the investment proposition.”

“The property is sure to attract a lot of attention from income based investors, and land-bankers, given its position on a major thoroughfare, and the location within one of Victoria’s best and most established Innovation and Education precincts,” said Mr Carr.

The property, situated within immediate proximity of the recently completed $557 million Victorian Heart Hospital, Monash University and M-City Shopping Centre, is also located within the Monash National Employment and Innovation Cluster – a globally competitive district which has attracted a collection of key health, technology, research and business precincts, educational institutions and commercial operations.

Mr Carr said, “Mulgrave has, not by accident, become the strategic headquarters for numerous national companies, including BMW, Nissan, Mercedes Benz and many more, and is ideally poised to benefit from the $34.5 billion Suburban Rail Loop (SRL) project that will deliver new train stations to Monash, Clayton and Glen Waverley. In short, it ticks all the boxes of an exceptional investment opportunity with exciting potential future development upside.”

Mr Rutman, JLL’s Head of Capital Markets – Victoria said: “Despite the recent headwinds that the Victorian office market has faced, we are witnessing a noticeable uplift in buyer appetite for high quality Metro office buildings that provide reliable and diverse income streams, rental reversion potential and major underlying landholdings that unlock future development potential.”

“700 Springvale Road ticks all of those boxes, and prospective buyers will be able to take comfort in the growth prospects of this major activity precinct to underwrite future uplift in capital value,” said Mr Rutman.

The property will be sold by International Expressions of Interest closing Wednesday, November 13, at 2pm (AEDT).