Offshore developer snaps up Balaclava block
An Asia based developer is paying $5.35 million for neighbouring Balaclava warehouses with plans for a mixed-use project.
The 1158 square metre Commercial 1 zoned site at 6-10 William Street – one holding in from the Carlisle St retail strip – was marketed for its potential to make way for a high-density apartment complex or office tower.
One of the factories is occupied by Astoria Paper Products.
JLL’s Josh Rutman, who marketed the property with colleague MingXuan Li, said investors are continuing to chase bayside blocks for boutique apartment and townhouse projects despite the COVID backdrop.
“Melbourne’s population and employment growth are forecast to recover strongly, which in turn is fuelling demand for development opportunities,” according to the agent.
Mr Li added demand is high for prestige suburbs favoured by affluent home-buyers and bohemian areas like Balaclava.
“The low cost of borrowing remains a strong lure in the market for developers actively looking for sites,” he said.
The 1920s warehouses abut a retail investment which sold in late 2019 for $7.5m – a price which reflected a low 3.29 per cent passing yield.
It is also near the Industrial 3 zoned site tenanted to Red Scooter as a reception centre – 25 William St – which traded for $2.3m last May, almost immediately after being listed (story continues below).
Fitzroy Street row sells for c$18m
In nearby St Kilda, three neighbouring properties, 7, 9 and 11-15 Fitzroy St, also sold this month, for a total of c$18m.
The amalgamation is configured with five retail tenancies and 14 upper floor apartments – all up with 1873 sqm of area.
They cover a 1335 sqm Commercial 1 zoned block marketed for its development upside.
The vendor was local investor Freddie Warschauer, whose family has held them for decades.
Meanwhile in nearby Ripponlea, a two storey building containing several retain tenancies and upstairs offices, on 716 sqm at 75-93 Glen Eira Road traded, for over $7m.
More to come.
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