Michael Renzella lists another inner city asset
Hotel investor Michael Renzella is selling another low rise inner city building with development upside.
At 9 Prince Patrick Street, Richmond – off Church Street, also the Cremorne border, the double storey, 451 square metre asset contains two self contained offices.
The 358 sqm Commercial 2 zoned site, with 15 metre of street frontage, could be extended or replaced with something taller.
It presently returns annual rent of $213,000 ex GST.
Assuming a five per cent yield, the asset could trade for more than $4.2 million.
The listing comes a year since Mr Renzella sold South Yarra’s three level Hotel Claremont to V-Leader for $22m.
On 906 sqm at 189 Toorak Rd, that historic was offered permit-ready for a 12 storey redevelopment.
Ten months ago the vendor offered a land rich hotel in St Kilda’s Fitzroy St with a c$20m-plus guide (story continues below).
9 Prince Patrick Street
Richmond is about 2.5 kilometres east of Melbourne.
“The versatile offering will appeal to a range of buyers in an area which has seen unprecedented tenant and owner occupier demand, especially from creative and information technology businesses,” Teska Carson Luke Bisset, who is marketing the property with Michael Ludski, said.
“The demand for office space in Richmond has been so great that it has forced tenants to look to neighbour Cremorne which has in turn risen the national prominence as a key fringe market,” he added.
“The future of these sister markets would appear assured as post-COVID demand for the fringe and suburban office markets continues to outpace supply” according to the executive.
Carsales.com.au, REA Group, Red Energy, Seek, Tesla, Uber and Walter Disney are amongst occupiers in the Richmond/Cremorne precinct, Mr Ludski said. “Such office properties have proven very popular with a range of businesses especially those with executives living in the eastern suburbs who appreciate ease of access and close proximity to the cafes, restaurants and bars that Richmond is so well known for”.
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