Pace Development Group has acquired its second Melbourne development site in two months.
The Hawthorn East holding at 9 Montrose Street (pictured, top) is costing the developer $4,062,500.
Currently a 460 square metre commercial building, occupied by Crossfit Gym, which pays annual rent of $75,000 – the 478 sqm parcel was marketed with a permit for a nine-level residential building containing 34 dwellings (artist’s impression, right).
Pace, however, has abandoned the apartment plan – instead saying it will construct a commercial project.
“The timing is right for us to take advantage of the record low commercial vacancy throughout the inner eastern suburbs,” Pace chief executive officer, Shane Wilkinson, said.
“With the abundance of local amenity surrounding the property, we are confident that a new office project will be very well received by the market”.
Pace’s new site – about five kilometres east of the CBD – is walking distance to the Auburn train station and Swinburne University’s Hawthorn campus.
The development site market has “roared back to life” since July, Mr Baxter added.
“With local and offshore developers snapping up sites and competing aggressively for prime real estate, clearly the looming shortfall in construction activity coupled with ongoing population growth is creating a perfect scenario for developers over the next 1-3 years.”
In July we reported, exclusively, that Pace was paying about $20 million for a 2434 sqm Commercial 1 zoned plot in Fitzroy (pictured, right) – expected longer term to be replaced with a high-density apartment complex.