Carlton North apartment block sells for $6 million at short auction

A walk-up block of flats in Carlton North sold for $6 million at an auction with just three bids on Wednesday.

The buyer plans to slowly renovate the 12 two bedroom apartments, which are all leased.

Meadows Partners’ Stephen Miles and Greg Meadows promoted 1-12/788 Drummond Street as a passive investment, returning annual rent of $256,000.

The vendor built the block in about 1968.

The Drummond Street block (marked) is about four kilometres north of the city.

On a 728 square metre parcel, it contains an open air car park for six cars.

The agents said any incoming owner could add value by strata-titling the existing dwellings and selling them down separately.

Longer term, a more efficient low-rise residential development, perhaps with underground car parking, could be considered.

The block is walking distance to the Rathdowne Village retail strip.

Lygon Street, which is serviced by a tram, is also nearby.

Carlton North is about four kilometres north of the Melbourne CBD.

Paul Tzamalis of The Auction Company auctioned 788 Drummond Street.

The first bid of $5 million was beaten by $5.1 million before the purchaser made his knock-out offer.

The sale price, Mr Miles said, was $300,000 over reserve.

The agent added that four parties turned up to bid on the day.

One of the 12 two-bedroom apartments, which has been modernised.
The block is in a quiet part of the suburb near Rathdowne Village.
The site could be replaced with a more efficient low-rise apartment building with underground car parking.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of