Another office is set to sprout in Melbourne’s grungy Collingwood following the sale of a warehouse investment with development upside at auction today.
The fully leased building on a 395 square metre parcel at 67 Gipps Street, and with two other street frontages, traded for $3.04 million.
Based on the asset’s annual rental return from Label Levverage, the sale price translates to a (low) 1.95 per cent yield.
Mr Walker said Collingwood is undergoing a period of generational transformation.
“Extraordinary demand is driving continual enquiry across the entire suburb,” the agent added.
The Commercial 2 zoned 67 Gipps Street site is 400 metres to the Collingwood train station.
In the immediate area, Aus Finance is building an 11 storey, 9000 sqm office, part of which is set to be occupied by co-workspace provider Workplace Group.
Hines – one of the world’s largest privately owned real estate firms – is also proposing a major office after paying $28.5 million for a 2120 sqm plot at 36-52 Wellington Street.
Adjacent to this site, at 1-57 Wellington Street, a residential complex proposed by Tim Gurner, Victoria & Vine, will contain ground retail along an entire block (from Victoria Parade to Derby Street).
Last week we reported that a Commercial 1 zoned 358 sqm site at 4-12 Langridge Street sold for $3.5 million.
Last month, an investor paid $7.35 million for a double-storey office on a 735 sqm holding at 20-22 Northumberland Road – as we reported.
Developer Peter Cahill also flipped adjoining Collingwood sites in August after owning them just four months.
In June, CBD-based design house Bar Studio paid $6.85 million for the red brick Easey Street office occupied for nearly 20 years by alternative radio station PBS.