Rapidly growing agency, Stonebridge Property Group, has transacted a warehouse and office building at 17 Cato Street, Hawthorn East for $4.2 million in an off-market transaction.
The sale was completed by Stonebridge’s specialised city fringe investment team of Dylan Kilner and Max Warren.
The sale represented a 4.5% yield for a largely warehouse building within the industrial and commercial precinct of Hawthorn East, bordered by Toorak Road, Tooronga Road and Auburn Road. The property is leased to Gerflor Australasia, a flooring manufacturer.
Despite the current lease term only having 18 months remaining, the purchaser has an optimistic approach to the future of the city fringe office and warehouse market, with feedback from business they have substantially stabilised now following the on-set of COVID-19 more than 12 months ago.
This trend is being seen across the city fringe market accordingly to Stonebridge Manager, Dylan Kilner “Across the city fringe markets like South Melbourne, West Melbourne, Collingwood, as well as more suburban locations like Hawthorn East, we have witnessed a big increase in enquiry from investors and occupiers to purchase in these sectors”.
Stonebridge Partner, Julian White, said this confidence is now resonating with the development market for delivery of more commercial space in the city fringe. “In the past couple of weeks, we have seen some major transactions like Fortis’s acquisition of 65-81 Dover Street Cremorne for a $130 million office project, Southern Cross Austereo committing to a major leasing deal at 101 Moray Street South Melbourne, as well as some significant funding announcements for city fringe office projects. The market is now starting its next cycle and the activity is exciting for all involved.”
Content & Image Courtesy of Stonebridge Property Group
