Richmond office property sells for $3.75 million, gains 20 percent in 8 months

A strata office property in inner Melbourne’s Cremorne (Richmond) has changed hands for the second time in the past eight months, this time for $3.75 million to an owner-occupier.

The 159-161 Cremorne Street property previously sold in November 2016 for $3.15 million and the transaction underlines the strength of the commercial property market in the area.

Teska Carson’s Tom Maule, who brokered the off-market deal with Matthew Feld and Michael Taylor, said the $600,000 or nearly 20 per cent rise in value in the short period reflected the strong demand for city fringe locations.

“The demand for strata office has been very strong recently and this has been underlined by a sale at a very good $5,357 a square metre,” said Maule.

“The buyer was looking for a property which provided modern accommodation, exposure, and an inner city location which offered immediate access to all essential amenities, including public transport and quick access to arterial links.

The 704 sqm ground floor property forms part of the Deal Corporation-developed ERA building, which comprises three levels of office space, 155 residential units, a café, and basement car spaces.

The property sold with vacant possession. 

Maule said the estimated fully-leased income was around $290,000 per annum.

Feld added that the Cremorne/Richmond market was very popular with local and off-shore buyers because it was close to the CBD.

The vendor was a Melbourne-based private investor.