Premium North Melbourne office to go under the hammer
A premium North Melbourne office at one of the city’s most significant interchanges is on the market, with a brand new fitout a part of the deal.
Investors could be further swayed by the property’s significant lease to global healthcare operator Health Careers International, which is in place for five years and with a further five-year option.
Positioned in prime commercial property territory between the Tullamarine Freeway, Flemington Rd and Racecourse Rd, the property at Suite 203, 187 Boundary Rd will be auctioned at Burgess Rawson’s next Investment Portfolio Auction on June 26.
Presented as-new with a sparkling fitout and a north-facing terrace, the 370 sqm office also includes nine secure basement car spaces on the title.
The office is home to HCI’s Health Careers Language Academy, which provides English courses for Melbourne booming population of foreign medical students.
Burgess Rawson director Raoul Holderhead, who is marketing the property with Scott Meighan, said few buildings were better placed to tap into the city’s demand for medical-based office space.
“It’s within walking distance of both the Royal Children’s Hospital and the Royal Women’s Hospital, while there’s a heap of public transport options on the doorstep,” Holderhead said.
“Being only a short distance from The University of Melbourne, from where a large number of the tenant’s clientele originate, makes it the perfect location for a tenant like this.”
“On top of that, it’s just an outstandingly presented office space, while the provision of car parking and the terrace makes it a very attractive long-term proposition.”
The leasing agreement includes 3% annual rent increases, with a current annual net rent of $122,701. Holderhead said the property is expected to fetch around $1.75 million, which would represent a 7% yield.
Suite 203, 187 Boundary Rd in North Melbourne is to be auctioned at Burgess Rawson’s 130th Investment Portfolio Auction at Crown Casino’s River Room at 11am on Wednesday, June 26.