This article is from the Australian Property Journal archive
ONE of the newest buildings in an emerging Melbourne city fringe office market has been put up for sale with hopes of $50 million.
Completed in 2022 by developer Ricdanic, 1 Sackville Street is fully leased to tech companies include anchor Epic Systems, which accounts for a bit more than half of the 5,341 sqm of office space, and Linktree, Birddog and Café Le Reve.
The eight-level building plus ground floor retail, mezzanine and double basement for 61 cars has a weighted average lease expiry of 3.58 years by income and is on a 933 sqm site.
Daniel Wolman and Oliver Hay of Cushman & Wakefield have the listing on behalf of Ricdanic.
“Tenants such as Linktree, Birddog and Epic, an international company that manages software for hospitals, were attracted to 1 Sackville because of its spacious rooftop terrace, superior end-of-trip facilities, outdoor balconies, wellness room and panoramic views of the CBD and Dandenong Ranges,” said Dale Brouze, development and project manager at Ricdanic.
“The design and location of the building has appealed to a younger generation who have ample building amenities plus access to Smith Street which was voted by Time Out readers as the coolest strip in the world.
“Sackville Street is all about working, living and playing in the same area. During COVID, people stayed at home and they missed out on the social infrastructure of an office environment, now they want work to be similar to a home-style living as well as to be in close proximity to shopping, food and transport.”
Wolman said the property is a lucrative opportunity due to high-calibre tenants; and being a highly functional and sustainable building situated within a thriving Melbourne location.
“With public transport in close proximity via trams, trains, or buses, and access to the Eastern Freeway, Sackville Street is helping to rewrite Collingwood’s commercial market as the suburb for tech and creative companies, so we are seeing a lot of interest from investors looking to attract these types of tenants.
“Furthermore, investors who are interested in sustainable and environmentally friendly buildings may be drawn to Collingwood, as there is a growing trend towards eco-friendly offices and buildings in this area,” he said.
Known for its vibrant arts scene, with numerous galleries, theatres, and cultural events throughout the year, Collingwood has undergone significant urban renewal in recent years, with many former industrial sites being transformed into modern office buildings and creative spaces.
Among the new modern office builds are Hines’ T3 Collingwood building that will be the tallest timber building in Melbourne, which last month secured the signature of global coffee chain Starbucks and has also secured a $70 million backing from the Clean Energy Finance Corporation in late 2022
Others over the past few years include the 88 Langridge Street project, home to vitamins and supplements giant Swisse and skincare brand Aesop, which developer Peregrine Projects sold a year ago to global real estate investment manager DWS for around $80 million, and the Liberman family-backed Impact Investment Group’s 54 Wellington Street
Leasing activity in the Collingwood office market has been high in recent times.
