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Prominent Fitzroy Site Set to Become Major Mixed Use Village, Melbourne

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Written by Marc Pallisco   
Thursday, 23 August 2012 09:03

A SUPERSIZED block in bohemian Fitzroy is expected to make way for an $80 million-plus mixed use development after selling off-market to a developer.

On the north-east corner of Johnston and Gore streets, the 2122 square metre site sold for more than $8 million reflecting a land rate per square of some $4000.

Close to the corner of the Smith Street retail strip the former warehouse at 239-247 Johnston Street have been occupied in recent years by retail users including homewares and replica furniture store, The Dogs Breakfast Trading Company.

Retail is expected to form the lower levels of any redevelopment, which is also expected to include a high-rise, high density apartment component.

Selling agent Larry Takis of Teska Carson confirmed the sale but not buyer or price when contacted by Capital Gain. He denied mid-tier developers are avoiding the local real estate market – pointing to an $8 million sale he negotiated conjunctionally at 203 Burnley Street, Richmond, in April.

Despite its proximity abutting the north-eastern tip of the CBD, and having dominant public housing towers of some 20 levels, developers in Fitzroy have been reluctant to pitch what would be major apartment towers.

Elsewhere in Melbourne 20-level apartment buildings are earmarked for Moonee Ponds, about eight kilometres north-east of the CBD. A 38-level tower is earmarked for South Yarra, four kilometres from town. In Footscray and Box Hill permits for towers of more than 30 levels have recently been applied for.