The investor who picked up an under-utilised Melbourne CBD apartment building on a one per cent yield in 2017 is ready to cash in after adding substantial value to the airspace.
Dysin Investment Partners can expect more than $8 million for 21-23 Anthony Street which was listed for sale this week as a development site, permit-ready for an 11-level student accommodation complex.
The proposal could be reworked as a hotel, traditional ‘own your own’ apartment building – or even an office – but the tower isn’t designed with any car parks.
It would offer 18 bike racks, though.
The outgoing 21-23 Anthony Street
The c1954 three level ex office and workshop on the site is utilised as a residential investment with five car garage and rooftop garden: six flats were collecting a total $57,000 in annual rent when it last sold for $5.65m.
At that time, the marketing agents promoted the substantial development upside of the 291 square metre parcel – zoned Capital City 1 in a precinct of the city which has seen a major building boom since 2005.
One of the brokers who promoted it – David Sia – has been given the appointment again.
Now with a newly formed team and company, Tiga Commercial, the executive is selling 21-23 Anthony Street with colleagues Nicholas Hii and Martin Leong, both who also recently held posts at “big four” commercial agencies.
The 21-23 Anthony Street proposal
Dysin is also planning a top level park at its 21-23 Anthony Street residential building, but it will be three times higher.
Its permit allows for 76 studio style units in a 12-level, 12.2 metre wide structure with windows on its east and west facade.
Each floor has an average of eight dwellings. The top, an outdoor communal space, will also contain an inbuilt BBQ, dining tables and seating areas.
Slab Architects, which this month won approval to develop its next office headquarters, in Collingwood, penned the 21-23 Anthony Street proposal.
All the new neighbours
The Dysin block is in a small lane between Franklin and A’Beckett streets within cooee of Queen Victoria Market.
Addresses immediately west of the market are zoned West Melbourne.
Properties to the north are classified as North Melbourne – except for those in the stretch of Elizabeth Street from Victoria Street to the Haymarket Roundabout – the city’s new Biomedical precinct – which are considered Melbourne.
Queen Victoria Market is also where the area’s biggest redevelopment is taking shape, incorporating what is known in planning circles as the Munro site – a 6329 sqm parcel City of Melbourne acquired for $76m in 2014 from a local family which held it since 1910.
The government is spending $250m on extending and modernising its retail facility, one of the city’s most popular tourist attractions.
But it controversially sold part of the market block, then permitted it to make way for a 38-level apartment building (artist’s impression, below right).
The purchaser, PDG Group, banked $333.5m on-selling the complex last July on a funds-through basis to Mirvac, which will retain it as a build-to-rent investment.
Other mooted projects in the pocket include SP Setia’s 65-level Uno at 111 A’Beckett Street, a site earmarked until recently for a complex called Paradigm.
A little further away is a major infrastructure investment – the State Library train station, part of the $11 billion Metro Tunnel project which will connect North Melbourne and the University of Melbourne to South Yarra via the city.
Recently completed residential projects around 21-23 Anthony Street include the landmark 92-storey Aurora Melbourne Central at 224 La Trobe Street, Victoria One at 452-472 Elizabeth Street, Light House at 450 Elizabeth Street, Swanston Central at 168 Victoria Street and Iglu Melbourne City at 229 Franklin Street.
The former Central Equity headquarters at 350 Queen Street on the south east corner of A’Beckett Street was recently replaced with a couple of major skyscrapers within a project called Queens Place.