Menzies Institute of Technology has sold West Melbourne’s former Carron Tavern.
On a 458 square metre block at 396-400 Spencer Street, on the south east corner of Batman Street, the double storey building traded last month for $5.71 million.
Menzies, which is directed by Dr Uck Han Chun, paid $4.4 million for the asset five years ago.
It was later refitted as a medical education facility – Menzies’ fifth in the city at the time (the private college is headquartered across the road).
The ex-Carron Tavern site failed to sell when it was offered for private sale last August with a guide price of more than $6.5 million.
Julian White, David Minty, Dylan Kilner and Chao Zhang from CBRE, a different agency, successfully sold 396-400 Spencer Street following an auction campaign.
West Melbourne airspace value boomed in 2018
With the introduction of the West Melbourne Structure Plan in 2018, airspace in the precinct is now be permitted to make way for major skyscrapers.
As such, 396-400 Spencer Street was marketed to developers.
The ex-pub was offered with vacant possession and a 9B certification allowing continued use as a school.
Investors were also expected to show an interest.
The property is opposite 83-113 Batman Street, which Deague Group has recently replaced with Melbourne Village – with 33 townhouses and two 27-storey apartment buildings.
Quarry owner Paul Lofitis owns a site at the other corner: his Dalston Bakery site earmarked for a 20-level tower.
Elsewhere in this pocket of West Melbourne, Victor Smorgon Group and Trenerry are building apartment complex as part of the pair’s West End project, replacing a 9200 sqm ex-Australia Post site.
The former Briscoe & Company warehouse at 164-184 Roden Street is also earmarked for a residential conversion.
Two months ago we reported that the owners of Festival Hall listed the stadium for sale after more than a century.