An office building in the masterplanned University Hill development is on the market with expectations it will sell for circa $25 million.
Adjacent to the Metropolitan Ring Road on Melbourne’s northern perimeter, the building is currently leased to RMIT and the Royal District Nursing Service (RDNS).
According to Dawkins Occhiuto marketing agents Andrew Dawkins, Chris Jones and Walter Occhiuto, and Knight Frank's Tim Grant and Tom Ryan, the property comes to market at a time when suburban office market investment activity has reached an all-time high.
"Demand from domestic unlisted funds and syndicates, along with an increasing level of interest from off-shore buyers, has, for a third consecutive year, put suburban office market investment in Melbourne into record territory," Dawkins said.
"The market is hot and for good reason. Melbourne has just recorded its highest annual net absorption level since 2010 with total suburban office vacancy at an historically tight seven per cent.
"In that environment office assets, and particularly those with blue-chip tenancy profiles in the best locations, are flavour of the month."Located at 30 Janefield Drive, on the corner of Princeton Terrace, the property comprises a modern, virtually new office building of 3,960 square metres NLA over four levels, including ground floor retail, on a 5,748 square metre site with 131 car spaces.
The property comes with a blue-chip tenancy profile including RMIT University and the Royal District Nursing Service (RDNS) accounting for 81 per cent of the income, and five separate retail tenancies, at a current net passing income of $1.59 million per annum with a weighted average lease expiry of nine years.
University Hill benefits from its location at the foot of one of Melbourne’s most rapidly growing municipalities – the City of Whittlesea - which has a current estimated population of 209,118 that is forecast to grow to 379,342 by 2041.
The $1 billion, 104 hectare park is expected to accommodate 3,000 residents and 4,000 jobs together with the 155 businesses within the 30,000 square metre commercial precinct.
