A prominent office investment within South Melbourne's commercial precinct has been sold for $10.2 million to a private Melbourne-based investor.

Situated at 49-51 Stead Street, the four-level building is fully leased to architects Ewert Leaf with a total net rental of about $556,348 p.a.

Originally built in 1985, the building has been fully refurbished throughout, with completion in July 2019. 

The property consists of ground floor retail/commercial premises and three upper levels of open light-filled commercial floor plates, while also benefitting from six undercover car spaces accessed from Palmerston Crescent.

It was sold prior to the end of an expression of interest campaign conducted by Alex Ham and Michael Gross, of Gross Waddell, in conjunction with Ted Dwyer, Ben Baines and Daniel Wolman of Colliers International, on behalf of a group of investors. 

At a glance: 

• A four-level commercial building at 49-51 Stead Street, South Melbourne has been sold to a private Melbourne-based investor for $10.2 million.
• The property was sold via an expression of interest campaign conducted by Alex Ham and Michael Gross, of Gross Waddell, in conjunction with Ted Dwyer, Ben Baines and Daniel Wolman of Colliers International.
• The sale price reflects a yield of 5.45 per cent.

Mr Ham said about 130 enquiries were fielded for the property, which was more than they had anticipated.

"It was probably a little above average to what we were expecting, but there is just not a lot of quality stock available at the moment," he said.

"A lot of the interest came from private investors and syndicates."

The sale price reflects a yield of 5.45 per cent and a building rate of $9,462/square metre.

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