An A-grade office tower in the top echelon of St Kilda Road office assets is being taken to the market, with buyers able to capitalise on the opportunity as the market starts its recovery.
The 16-level building at 484 St Kilda Road features 20,270sq m of net lettable area and 223 car bays on a prime corner site of 4,576sqm. Its central boulevard location affords tenants some of the finest protected views across Albert and Fawkner Park and Port Phillip Bay.
An International Expressions of Interest campaign is being managed by Knight Frank agents Trent Preece and Tom Ryan in conjunction with CBRE agents Kiran Pillai and Scott McGlone on behalf of the vendor.
Price expectations are in excess of $90 million.
The asset has a WALE of 1.9 years by income, a net passing income of $6,012,409 and a fully leased net passing income of $10,869,832, with major tenants in Frasers Property, Garnaut Private Wealth, Vitera, to name a few.
Mr Preece said 484 St Kilda Road offered buyers an opportunity to enter the market at a cyclical low, with strong potential for capital growth as market fundamentals stabilise and rebound in the short-to-medium term.
“The property is ranked in the top echelon of St Kilda Road office assets, underpinned by exceptional building fundamentals and historic occupier success,” he said.
“It occupies a high-profile corner site on Melbourne’s iconic boulevard, with its three-street frontage enhancing the asset’s exposure, accessibility and long-term redevelopment potential.
“As the market recovery takes hold, quality assets like 484 St Kilda Road are increasingly sought after, and the buyer will capitalise on the growth to come in the market.”
Mr Pillai said the property was 65% occupied but was attracting occupier interest and rental growth following a recent refurbishment and the delivery of spec suites.
“The highly sought after views across Fawkner and Albert Park are safeguarded by the strata nature of surrounding developments, as well as the three-street frontage advantage, which broadens the asset’s longer-term versatility,” he said.
“Occupier demand for the asset is driven by its proximity to one of Melbourne’s most dynamic health precincts, as it sits adjacent to the Alfred Hospital medical hub.
“The property also has access to plenty of amenity, major arterial road networks and convenient transport options, further enhanced by the opening of Anzac Station. With a fresh approach, this asset has all the ingredients to outperform.”
Knight Frank’s recent research, The residentialisation of St Kilda Road, found that while there had been many buildings on St Kilda Road converted from office to residential space over the past 30 years, two areas offered clear agglomeration benefits for office space – the areas within proximity of the Alfred Hospital and the newly-built Anzac Station (the Anzac precinct).
484 St Kilda Road also offers a clear opportunity to add value by elevating the asset’s environmental performance through targeted upgrades and operational efficiencies. It currently has a 3.5-Star NABERS Energy rating and 5.5-Star NABERS Water rating.
The EOI campaign for the asset will close at 2pm (AEDT) on Thursday, October 23.
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