An Alphington aged care property has changed hands for $14.7 million, nearly $5 million more than was expected.

The collapsed Chronos Aged Care group ran the facility at 9-11 Old Heidelberg Road until it went into administration last year, owing more than $25 million to residents, employees and other creditors.

It is understood a major healthcare operator has nabbed the 7207 sq m property which includes two neighbouring houses. Records show a caveat has been placed on the property’s title by Perpetual Nominees.

The triangle- shaped site fronts both Old Heidelberg and Heidelberg roads opposite one of the oldest Dan Murphy’s outlets and the group’s headquarters.

The vendor was a local family who had owned the property for 25 years.

Gray Johnson agent Matt Hoath did the Alphington deal with Rory White said the original expressions of interest campaign failed to find a buyer. It was certainly worth the wait.

The repurposing of aged care and other medical facilities is occurring across the city. With building costs running so high, they are being snapped up and reused.

A 48-room Baptcare aged care home in Preston sold this week for $5.5 million by a private investor planning to convert it into specialist disability accommodation.

The 2637 sq m property at 547-567 Bell Street was the fifth aged care facility to sell this week.

The deal was brokered by CBRE’s Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat, who also managed the Mt Eliza transaction.

“From selling an average of two vacant aged-care homes in 2018-20, our specialist team sold five last year and we’ve already matched that tally this year,” Peluso said.

Vacant properties in Glen Waverley and Northcote in Victoria, and Cairns, Clayfield and Toowoomba in Queensland are expected to hit the market in the coming weeks, he said.

Health outfit

Down the Coburg end of Bell Street, community health outfit, Merri Health, has sold its landmark premises on the corner of Sydney Road for $5.09 million.

The two-storey red brick property was purchased by Base Group’s Harry Fung on a tight 1.68 per cent yield and a strong land rate of $6760 a sq m.

“I’ve always had an emotional connection to the area as this is where our family established themselves when they first came out to Australia. I have fond memories of this building as I walked past it every day on the way to school,” Fung said.

“Coburg is culturally rich, and I am looking forward to rejuvenating this building back to its former glory,” he said.

Merri Health has nine locations, mostly in the northern suburbs, and bought the property in 2016 for $4.07 million with plans to develop into a head office. That plan never came to fruition and HQ is now in new digs at the redeveloped Pentridge nearby.

The deal was handled by Gross Waddell ICR’s Alex Ham and Danny Clark.

Bank building

A corner site in busy South Yarra occupied by NAB as a tenant for 72 years has sold on a yield of 2.53 per cent.

The flagship building on Toorak Road and Chapel Street corner, opposite Larry Kestelman’s Capitol Grand project and the Como Centre, sold to a local investor on Thursday at auction for $16.2 million.

Bids opened at $14.5 million, already on a sub 3 per cent yield, and four keen buyers went on to fight it out, one bidding remotely from overseas, until the property was knocked down under the hammer in front of a large crowd.

Selling agents Colliers’ Matt Stagg, Tim McIntosh, Daniel Wolman and Leon Ma said they got more than 200 enquiries from local and offshore investors.

NAB has a new five year term on the lease after a hefty $1.5 million was spent refurbishing the store. The sale is “counter-cyclical to what’s going on with other bank branches,” said McIntosh.

Swags of other bank branches have traded recently but they’re mostly vacant.

Glass blower

There’s a lot happening in the inner-north. A 669 sq m holding at 726-732 Nicholson Street, North Fitzroy is on the market.

The parcel of shops sits in front of and adjacent to Transdev’s huge North Fitzroy’s bus depot. It’s expected to sell for around $5 million.

Fitzroys’ agents Chris Kombi, Ervin Niyaz and Shawn Luo are handling expressions of interest.

And in Kensington, glass blower Mark Douglass is selling his Kensington studio, a mixed use warehouse at 76-78 Smith Street.

Douglass has a long history with architects and developers designing chandeliers and other light fittings.

Recent projects include the Ritz Carlton Hotel, the Lucas Group’s Society restaurant and Gurner’s St Moritz.

Douglass also holds events at the studio featuring glass-blowing demonstrations. Rolls Royce, Zagame and the National Gallery of Victoria have all partnered with Douglass.

Stonebridge Property Group’s Max Warren, Dylan Kilner and Chao Zhang are handling the sale of the 617 sq m warehouse. It’s expected to sell for around $5 million.