Hotel investor Michael Renzella is selling a significant property in St Kilda’s Fitzroy Street to Charles Mellick’s Fortis Development Group for a speculated $21 million.
Spreading 1924 square metres, #63-73 contains a three level short-term accommodation complex, with 40 studios, ground floor retail and a 37 bay open-air car park accessed from a laneway off Jackson St.
It was listed in late 2021 permit-ready for a two level extension raising the total number of dwellings to 54.
Instead, Fortis last quarter applied for a larger project, incorporating the neighbouring 746 sqm site – the ex-Area 61 nightclub – which last traded for $7m in 2020.
Fortis intends to raze the Area 61 building – 61 Fitzroy St – and the Renzella asset for its five storey, c8190 sqm project, which it estimates will cost $25m to complete.
The complex will contain 39 dwellings – the majority (19) with two bedrooms. The residential component is also designed with seven three bedroom penthouses. Occupant-only amenity is expected to include a business lounge, boardroom, cinema and office.
The ground floor will include nearly 900 sqm of retail in three tenancies, between 258-319 sqm (story continues below).
Two basement levels also form part of the plan, with 100 car parks, dog washing facilities and a resident amenity room with a golf simulator.
The hospitality components are expected to utilise a liquor licence attached to 61 Fitzroy St.
Sydney-based Fortis, also led by investment banker Patrick Keenan and financier Dan Gallen, has been establishing a Melbourne development pipeline since picking up an Eastern Road, South Melbourne, site in 2019.
The company is also planning a major office at Cremorne.
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