A luxe Melbourne office space, currently tenanted to a global recording studio, sold last weekend for $2.95 million, and it's where some of Australia's most prominent ads and talent have recorded their sounds, jingles and voiceovers over the past few years.
Home to Squeak E Clean Studios, the sale of 1-5 Yarra Place in South Melbourne was managed by Stonebridge's Chao Zhang, Max Warren, and Dylan Kilner.
The building in South Melbourne, currently home to Squeak E Clean studios. Picture: realcommercial.com.au
It's where prominent outdoors brand Macpac recorded the sounds for its 'Precarious' ad, playing to the strengths of its puffer jacket material - almost a Melbourne uniform in winter.
Squeak E Clean also designed the sounds for Toyota's GR Corolla ad.
Other prominent brands in the studio's ad portfolio include Balter Beer, Uber Eats, WWE (wrestling), Australia Post, BMW, Ford, Lexus, Volvo, McCain, and Telstra.
It's also worked on various government initiatives such as Victoria's TAC 'Wake up to Yourself' campaign, SafeWork NSW, and the Department of Social Services' 'Consent Can't Wait' campaign.
In the city of angels, Squeak E Clean has worked with Aussie music sensations such as Mallrat, members of INXS, and Elle Graham or 'Woodes'.
Back in South Melbourne, it's plush inside the studio, with multiple kitchens and breakout areas satiating hungry and thirsty voice talents, producers, and ad execs.
Moody, dimly lit recording rooms let creative types find their groove, hopefully one day unearthing the next viral ad or musical talent.
One of Squeak E Clean's recording decks. Picture: Harrison Astbury
South Melbourne also has a lot to offer - throw a stone and you'll hit the CBD, not to mention many bars, restaurants and cafes.
The office space-turned studio is tucked away on Yarra Place, just off Clarendon Street - one of the area's most happening thoroughfares.
Mr Kilner told realcommercial.com.au the sale was a win all around, with the New South Wales-based investor attracted to a steady tenant and lease.
The current lease returns just over $177,000 per year, with annual increases of 4%, expiring in 2030; there are two more seven-year options on the table.
The vendor paid $2.5 million only a handful of years ago, which Mr Kilner called a "tidy profit".
Squeak E Clean's lounge, replete with snacks. Picture: realcommercial.com.au
Anecdotally, he said Stonebridge has noticed a strong uptick in investors from northern states chasing Victorian assets because they are relatively undervalued.
This generally tracks with the wider market trend of Melbourne's 'flight to quality', with office absorption rates improving, particularly for premium and A-grade assets, in lieu of tenants chasing CBD-adjacent locations.
Global volatility has also led to a compression in yields as investors favour steady, defensive assets.
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