The Zagame family from Melbourne has acquired the Swinburne University building in Lutton Lane, Hawthorn for $55m.
The 5,660sqm building is fully leased to the University with a new 5 year lease recently entered into paying $2,896,000 pa with 3.75% annual increases. The income provides the purchaser with a yield of 5.3%.
The vendors, Trumen Corp and Bricktop Group, paid $37 million for the four-level building in 2015, proving a 12% per annum capital gain over the holding period.
The building sits on a 4,104sqm site which has future development upside in highly flexible Commercial 1 Zone. It is located in the heart of highly acclaimed Glenferrie Road retail, hospitality and public transport precinct.
The sale campaign was run by CBRE and Gorman.