Perfect timing for iconic bayside building
If you’ve ever done the city commute from Melbourne’s bayside southern suburbs, you’ll know this office building well.
You’ve probably spent a bit of time staring at it while waiting for your chance to push through the morning traffic along Nepean Highway.
To those who cross the South Rd intersection that separates Moorabbin, Bentleigh and upmarket Brighton, the Bayside Junction building is almost as iconic as the Port Phillip Bay beach that lies only a few kilometres away.
Just three years after it last changed hands, the prominent five-level office complex is on the market again, with an expected price tag of more than $42 million and a swag of new and renewed leases.
The Department of Human Services has recently signed on again to anchor half of the almost 12,000sqm building for the next five years, while Alfred Health, the Royal District Nursing Service, Care Park and Re-Creation Health Club are also among the major tenants with significant leases.
Agents Colliers International and Bayley Stuart have been appointed to sell the property, which has a net annual income of $3.6 million and an average weighted lease expiry of 4.25 years.
It’s a totally different building to what it was three years ago
Colliers’ Peter Bremner says the current owner bought the property only three years ago but had put a significant amount of improvement into it since then.
“The majority of the sitting tenants have renewed a lot of leases, but they’ve also done some new leases and spent a bit of money on the building,” Bremner says.
“It’s a totally different building to what it was three years ago. The difference is quite stark in both the physical and also the leasing profile.”
Bayside Junction also features 340 on-site car parks, a café, views across the bay and into the CBD and is just a two-minute walk from Moorabbin Railway Station. It also lies at the heart of one of the most prominent retail and industrial areas in Melbourne’s south.
Bremner says there is potential to grow or develop the site in future years.
“The strong, long term returns Bayside Junction will provide are attractive and transparent yet it still goes a step further as an investment proposition, as it adds potentially even more lucrative long term outcomes by utilising the massive 6466sqm landholding for an even greater Melbourne landmark, as a residential or hotel conversion or through the addition of new floor levels,” he says.
Bayside Junction is for sale by expressions of interest, which close on August 6.