Jazz bar owner sells Melbourne hotel
Bird’s Basement owner and developer Albert Dadon has sold the hotel component of the 10 year old Art on the Park tower, opposite Flagstaff Gardens, at the city’s north west tip.
The 220 studios, trading as Oaks Melbourne on William Suites but offered vacant, are believed to be collecting about $70 million.
The Chen family, which hold other local hospitality investments, is the buyer.
JLL’s Peter Harper and Nick MacFie were the agents.
The deal a year since the same brokers sold Mark Toma’s Vertical the Adelphi on Flinders Lane for $25m.
Not long earlier, a China based operator paid $17.4 for the freehold going concern of Carlton’s Lygon Lodge, with 60 modern suites over five storeys.
In 2021 meanwhile, we reported Brady Group acquired a 19 level apartment building – a repurpose and extension of a 12 storey office – at 388 Lonsdale St.
With 147 dwellings, that property use was changed again, to a hotel: it now trades as the Brady Apartment Hotel Hardware Lane.
Next chapter for parkside hotel
Mr Dadon’s Ubertas developed the 35 storey Art on the Park and hotel at 350 William Street, also with 356 own-your-own apartments (story continues below).
Jazz club Bird’s Basement is downstairs.
There are also 37 car parks.
The agents marketed the potential for the hotel to be repurposed as alternative accommodation – specifically build-to-rent.
The serviced apartments each spread about 38 sqm, which is above average, with a bathroom and kitchenette; some have balconies capturing Docklands views over Flagstaff Gardens.
They also spruiked the asset’s ability to trade immediately or after a renovation and reposition.
The deal comes over a year since Ubertus sold a neighbouring 1200 sqm site – 354-360 William St – to student accommodation provider Iglu which recently started constructing a two-tower complex, of 10 and 20 floors, with 485 dwellings – 443 of them, studios.
“Melbourne’s CBD has witnessed a strong evolution in recent years with much investment and development activity focused on its northern end,” Mr Harper said on listing 350 William St last year.
“One particular aspect that will positively impact the hotel is the impending $1 billion-plus transformation of Queen Victoria Market and the nearby Melbourne Metro Tunnel that will allow greater cross-city access for further economic activity on this side of the CBD,” he added.
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