An Abbotsford showroom on Hoddle Street – which in this part of town is also the Collingwood border – is for sale as a long-term development play.
The 1864 square metre holding at the south east corner of Abbott St, where it has over 40 metres of frontage, is expected to sell for over $15 million.
Until 2019 a Swan Homebase, the building is occupied by Bathware Direct and Vavoom Homewares.
The head tenant, Swan Hardware, pays net annual rent of $315,000 on a lease ending next September with a four year option.
Given the potential vacancy, the property is being offered with a planning scheme for a 12 storey office containing c16,600 sqm of net lettable area and 86 basement car parks.
“The Commercial 2 zoned corner site provides an opportunity to create a modern commercial development with incredible exposure to one of Melbourne’s busiest roads with over 330,000 people passing along Hoddle Street daily” Cushman & Wakefield’s Daniel Wolman, who is marketing the property for a local family with Marcus Neill, Leon Ma and Oliver Hay, said.
“As well, the Doncaster Express bus stop is on the front doorstep and the property is located within 200m of the Eastern Freeway exit ramp making it the northern gateway to the CBD,” he added.
The agents said the airspace of 294-296 Hoddle St could also make way for a strata office project or hotel.
Alternatively, given its profile – one holding south of the Eastern Freeway offramp – they added it could be repurposed and extended as a car showroom.
Elsewhere in the street, at #222, Hirsch & Faigen, co-directed by Ben Hirsch, the son of United Petroleum founder Eddie, is developing a 7450 sqm office, North Helm, about a third of which is pre-leased to Flexi Group’s co-work outfit The Hive.
Thorne Harbour Health meanwhile in recent years moved into a four storey warehouse converted office at #200 – a property it coincidentally purchased from Eddie Hirsch and the other United Petroleum co-founder, Avi Silver (story continues below).
East of Hoddle St, CHT Architects and Hamilton Marino recently completed the Craft Works office, replacing the ex-Roving Enterprises studio, at the north east corner of Mollison and Nicholson streets.
Several offices have also recently been completed in the neighbouring Collingwood amongst them 71 Gipps St, owned by RF Corval and part for lease, 88 Langridge – which recently sold to the local arm of German based fund manager DWS for $77.5m – and 54 Wellington, which the Liberman family backed Impact Investment Group recently listed for sale with $60m-plus price hopes.
UEM Sunrise also owns a major apartment development site on Hoddle St, Collingwood – a collection of former car yards including the ex-Yarra Honda dealership – covering 5390 sqm which set it back $40m in mid-2020.
Last month, meanwhile, we reported Sydney based car importer Neville Crichton secured a Victoria Parade, Collingwood, showroom also marketed for its development upside with plans to repurpose it as a dealership.
“Abbotsford is a prominent early industrial area of Melbourne which has developed into a funky place to live and work, with an array of bars and restaurants and excellent public transport,” Mr Wolman said.
“It provides an eclectic mixture of amenities and attracts a young population with over 46 per cent of the residents of Abbotsford being within 25-40 years of age,” he added.
“Investors are looking to take advantage of the CBD fringe office sector dynamics, with new office buildings in Abbotsford achieving net effective rents in excess of $500 per sqm, pa,” according to the executive.
“Only two further Abbotsford office buildings are proposed…in the next 12 months which carves out an incredible opportunity to take advantage of the discretionary maximum height of 42m and pave the way for a creative development of this Commercial 2 zoned site which encourages a mixture of commercial uses”.
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