Investor picks up outer-Melbourne warehouse for $515,000 on 7% yield

A local investor has acquired the warehouse premises of Classic Picture Framers in Clayton for $515,000, equating to yield of around 7%, in a private sale.

The price is exclusive of GST.

Classic Picture Framers has a long-term lease on the property, which is situated at 49 Sarton Road in Melbourne's outer south-east.

It was marketed and sold by Ryan Amler of Ray White Commercial Oakleigh, who said he fielded over 25 enquiries about the property before completing the sale to the local investor.

RP Data records show the warehouse took just 32 days to sell, having been marketed at $540,000 plus GST.

“The property currently returns approximately $36,000 per annum, plus GST and outgoings, so the fact it had a long-established tenancy agreement that delivers a consistent and healthy yield meant interest would be high," says Amler.

The warehouse measures 450 square metres with a total land area of approximately 712 square metres.

“The size of the complex is advantageous, and the on-site parking and terrific street frontage to busy Sarton Road make it a prime location for a number of commercial uses,” says Amler.