This article is from the Australian Property Journal archive
TWO fringe CBD commercial sales in South Melbourne and South Yarra have changed hands for $15.75 million after pulling in interest from investors, owner-occupiers and developers.
In South Yarra Fitzroys’ Chris James and David Bourke sold 34 Garden Street at auction for $7.7 million on a 2.47% yield, on behalf of private owners who have held the asset for the last 30 years.
“Inner-suburban commercial offices in highly accessible locations and surrounded by hospitality and lifestyle amenity are in huge demand at a time of flexible working arrangements,” said Bourke.
The winning local private investor came out ahead of other investors and developers drawn to the 900sqm showroom, warehouse and office building sitting on a zoned Commercial 1 468sqm site, with the sale price reflecting a land rate of $16,450/sqm.
In addition to boasting secure tenant Lovelight, an Australia and New Zealand custom window furnishings supplier, the site sits within close access of the Chapel Street and its hospitality, retail and entertainment amenities, such as the Jam Factory.
“Developers were encouraged by the favourable Commercial 1 and Chapel Street South Yarra Activity zoning that afforded huge development potential with a 27-metre height limit. The high land rate is consistent with sales of well-located sites in the booming Richmond and Cremorne markets,” added Bourke.
Meanwhile in South Melbourne, a local owner-occupier snapped up a 657sqm commercial site at 163-171 Clarendon Street for $8.05 million, reflecting a $8,164/sqm building rate and a $13,400/sqm land rate.
163-171 Clarendon Street South Melbourne
On behalf of a private vendor, James and Rob Harrington sold the property which comprises a 986sqm two-level commercial building, with 10 on-site parks on the zoned Commercial 1 zoned site.
Sitting in the South Melbourne Central Activity Centre zone, the property brought in 75 enquiries from owner occupiers and developers looking to reap the rewards of the precinct’s development opportunities.
“Highly accessible inner-city locations with quality hospitality and lifestyle offerings are in vogue as workers want to be closer to their offices in a time of flexible working arrangements,” said James.
This property offered desirable access to lifestyle and hospitality offerings, sitting within close distance of Clarendon Steet’s hotels and eateries and the South Melbourne Market, and South Melbourne Central shopping centre.
“South Melbourne and Southbank are expected to attract more office activity given the multitude of developments across the CBD and city fringe, including the adjacent Fishermans Bend urban renewal precinct that will boost the immediate population for years to come,” concluded Harrington.
