An inner-Melbourne site known to a select few unlucky occupants has hit the market.
The Melbourne Impound Yard at 34 Cromwell Street, Collingwood (pictured top, left and bottom), is being promoted as an investment with office redevelopment potential.
Walking distance the CBD, the 2016 square metre site is about 350 metres away from the North Richmond train station and 600 metres to both the Smith Street retail strip and Fitzroy Gardens.
It could trade for between $15 million and $20 million based on the value of Commercial 2 zoned land in the region.
Configured as a single-level car park with rooftop parking and a multi-level brick factory – the property is rented to Nationwide Towing which pays current annual rent of $161,000 on an agreement expiring in 2022.
CBRE’s David Minty said the block offers an ideal floorplate for a commercial office project.
The towing centre is located just off Langridge Street where Salta Group’s Tribe Hotels has secured a 1000 sqm site for a new inn, Mr Minty said.
Colleague Julian White said “Collingwood is one of the most tightly held city fringe suburbs with limited purchasing options”.
Land rates have doubled over the past three years, he said.
Recent development site sales in the area are achieving rates of between $7500 per sqm to $10,000 per sqm.
Victorian planning minister Richard Wynne recently identified Collingwood as a location to apply a new Commercial 3 zone which would enable 35 per cent of floor area in a project to be allocated for residential development, the agents said.
Across town, CBRE is also marketing the Moorabbin site which for years has been occupied by Melbourne’s Cheapest Cars. The 2.1 hectare holding at 648 South Road is being promoted as a development play by Stephen Adgemis and David Aiello, who are managing an expressions of interest campaign closing near the end of this month.