This article is from the Australian Property Journal archive
SUPPLY is fast running out in the Melbourne CBD’s prime market, with 440 Elizabeth Street hitting the market amid this supply/demand imbalance.
440 Elizabeth Street spans more than 13,437sqm of net lettable area across a 2,043sqm site and is one of the last retail core landholdings at the northern end of Elizabeth Street.
According to industry sources, the price guide for the asset is believed to be in the range of $80-85 million.
Daniel Wolman, Oliver Hay and Leon Ma from Cushman & Wakefield are managing the sale of the property with just a short-term WALE meaning there is room for immediate refurbishment, value-add, or development.
“This area is undergoing significant growth, bolstered by the new State Library Metro Station,” said Wolman, international director & co-head of investment sales at Cushman & Wakefield, VIC.
“440 Elizabeth Street represents a prime investment opportunity, being one of the last retail core landholdings available in this bustling area with immense value-add and development potential.”
440 Elizabeth Street is the only property on the block with frontage exceeding 50 metres, enhancing its prominence and accessibility.
The site is also set to benefit from Lendlease’s nearby developments, as well as from the new State Library Metro Station, which will boost both foot traffic and development opportunities.
440 Elizabeth Street also sits within close range of Melbourne Central, RMIT University, and Queen Victoria Market, which contribute to the vibrant 24/7 precinct.
“This property is a cornerstone opportunity for investors looking to capitalise on Melbourne’s high-growth CBD precinct,” added Wolman.
“The potential future uses for 440 Elizabeth Street are diverse, allowing for strategic approaches such as refurbishment, repositioning, or redevelopment. Investors can also drive future rental growth or consider future owner occupation.”
So far in 2024, there have been no sales in the Melbourne CBD prime market, with only two assets in due diligence.
It took five months of 2024 for a major transaction to occur in Melbourne, with the sale of a 760-bay car park at 28 La Trobe Street, located within the East-End of the CBD occupied by Secure Parking, marking the largest single CBD transaction so far this year.
While in April, the CBD saw six-level a car park site at 380 Queen Street listed for sale by its Singaporean owners with expectations of around $120 million.
At the same time, an office building on the Melbourne CBD’s Queen Street that appeared to have sold for $30 million in 2023 fell through and is back on the market.
In the March quarter, the premium Melbourne CBD office market recorded positive net absorption of 8,100 sqm as pedestrian counts continued to recover, according to JLL Research.
