Pace Development Group buying major Fitzroy site for $20 million

An enormous Fitzroy block – zoned Commercial 1 and with three street frontages – has found its way into the hands of a local builder, speculated to be Pace Development Group.

Gross Waddell marketed the 2434 square metre plot (pictured above and below) as the suburb’s best super-site.

It is understood to be selling for about $20 million.

Configured with a low-rise warehouse at 369 Gore Street (built as the Argyle Shirts factory more than 100 years ago), and neighbouring commercial assets, the holding offers a 38 metre frontage to Johnston Street and 27 metres to Argyle Street.

An aerial image of the site (highlighted), about two kilometres north-east of the Melbourne CBD.

The historic factory, and the offerings next to it, follow a tree-lined row of Gore Street for 74 metres.

The property is three blocks from the Brunswick Street retail strip and about two kilometres from the Melbourne CBD.

Agency director Benjamin Klein would not comment about the specifics of the sale result – including buyer or price.

But of the marketing generally, the broker said the range of inquiry was significant.

Developers small and large, local and international, expressed an interest with 15 offers received.

The holding is configured with several commercial properties including this one, configured as a showroom.

While the zoning allows for a range of development outcomes, most of the curiosity is understood to have come from large Melbourne-based residential builders.

The Fitzroy asset provides Pace a holding income ($532,904 per annum) – and is on that basis selling on a c2.7 per cent passing yield.

Mr Klein represented the vendor, a local private investor, with colleague Michael Gross. The properties, with seven titles, have been held by their client for more than 50 years.

Elsewhere in the immediate area, buildings of up to five levels exist.

Across the road, SMA Projects’ Martin Strode is constructing an eight-storey apartment complex, The Lyric, on a former theatre site.

A birds-eye view showing the seven parcels which formed the Fitzroy supersite.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco