A local developer has paid $3.5 million for a compact site with three street frontages in Melbourne’s inner north Collingwood.
The sale result for 4-12 Langridge Street values every square metre of land at $9500 – not a record for the trendy suburb, but approaching it.
More than 100 people attended last Thursday’s auction.
Currently configured with a renovated double storey office leased until 2022, the property generates an annual rental income of $81,120.
The Commercial 1 zoning of the land, however, provides multi-storey redevelopment potential.
An office or apartment building – or one incorporating both uses – can also be considered, given the zoning.
At the north west corner of Little Oxford Street, a block east of the Smith Street retail strip, the Collingwood holding is about a kilometre from the CBD.
“The property drew quite a lot of enquiry, due mostly to its excellent location on Melbourne’s CBD doorstep, from a range of buyers including investors and owner occupiers as well as a strong developer contingent” Teska Carson’s Luke Bisset said.
“While the tenant has a further five year lease option, a redevelopment clause provides the owner with the option to give 12 months’ notice to the tenant at any time after the fourth year of the initial term,” the agent added.
Mr Feld said “Collingwood is one of the best performing city fringe suburbs as it is underpinned by great lifestyle amenity including access to shopping, educational and medical facilities, public transport and freeway access, and quick and easy access to the CBD”.
“Strong recent development activity in the area provides an indication of just how attractive it is and the likelihood it will continue to provide property owners and purchasers with strong investment growth and development opportunities,” the broker added.
Last month we reported that local developer Peter Cahill sold neighbouring Collingwood sites in Rockeby Street – after owning them just four months.
We also reported that an investor paid $7.35 million for a double-storey brick office on an 825 sqm site at 20-22 Northumberland Road.
In June, CBD-based design house Bar Studio paid $6.85 million for the outgoing Collingwood headquarters of radio station PBS, at 47 Easey Street – as we reported here.
Another owner-occupier also invested in the suburb this quarter: as we reported two months ago, a Sydney-based financial services business paying $5.75 million for a large, renovated office built into a four storey red brick former warehouse, at 42 Cambridge Street.