The Melbourne CBD building housing renowned Greek restaurant Tsindos has sold at auction for $8.1 million.

CBRE’s Melbourne City Sales team of Julian White, Alex Brierley, Nathan Mufale and Leon Ma managed the 197 Lonsdale Street on behalf of the vendor, who has owned the property since 1980.

The three-level, 328 square metre building is positioned on the corner of Lonsdale Street and Heffernan Lane and offers more than 30 metres of street frontage.  

At a glance:

• 197 Lonsdale Street Melbourne has sold for $8.1 million at auction, reflecting a yield of 1.29 per cent.
• The sale was managed by CBRE's city fringe team of Julian White, Alex Brierley, Nathan Mufale and Leon Ma.
• The three-level, 328 square metre building is positioned on the corner of Lonsdale Street and Heffernan Lane and offers more than 30 metres of street frontage.  

Mr White said the result was a clear indication of significant supply and demand imbalance.

“This is only the fifth sale of a sub $20 million freehold building in the Melbourne CBD in 2019, with more than double the number of sales occurring in the same period last year," he said.

Mr Brierley noted that the result, coupled with other recent Melbourne CBD sales, had also demonstrated the significant power of the auction method of sale.

“We had offers before going to market in the mid $5 million range, which were seriously considered by the vendor,” he said.

“However, given the limited supply of CBD assets, we made a clear recommendation that auction was the best method of sale and the result speaks for itself.” 

The property was purchased by a Taiwanese investor, who outbid six other parties, including a prominent local under bidder.

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