A local investor has snapped up a Glen Waverly retail asset leased to Fitness First prior to the commencement of a sales campaign amidst outstanding buyer interest in the highly coveted Glen Waverley school zone.
Colliers International’s Jeremy Gruzewski and Tom Noonan have sold a two-level, 2,205sqm refurbished gymnasium on a large land parcel at 1-3 Coleman Parade in Glen Waverley.
“A sales campaign for this property was due to launch this week, but after a phenomenal response from the pre-marketing release we received an unconditional offer that was too good to refuse,” Mr Noonan said.
“We had significant interest from buyers who missed out on our recent sale of a retail investment property leased to Fitness First in Highett, which was purchased by developer ICD Property for $15.6 million.
“These buyers jumped at the chance to acquire a similar asset in a very popular, tightly held suburb like Glen Waverley.
“The successful investor was very interested in the significant residential upside on offer at 1-3 Coleman Parade upon lease expiry, which provides long term development potential.”
The sale price of $10.53 million represented a yield of 6.87% and an impressive capital value of $3,127/sqm on the 3,367sqm site.
Mr Gruzewski said the sale represented a very strong yield when compared to other gym transactions, which was a result of the longer term development upside.
“The result is the combination of the blue chip tenant, strong annual income generated by the lease and the strong recent performance of the Glen Waverley area when it comes to investment and development,” he said.
“Glen Waverley is one of the most popular up-and-coming suburbs in Melbourne’s east, with homeowners, investors and developers alike attracted to strong, sought-after schools in the area.”
Mr Noonan said: “According to REA Group research, Glen Waverley topped a list of Australia’s 10 most searched suburbs by Chinese buyers on its myfun.com property portal in 2014.”
Glen Waverley Secondary College was one of the top performing schools in Victoria last year.