RESCOM Group banks $8.1 million offloading South Melbourne HQ

RESCOM Group has sold its high-profile South Melbourne headquarters for $8,088,000.

RESCOM’s mortgage business has occupied the three-level, 1369 square metre office at 100 Park Street for more than 20 years.

The office sits on a 595 sqm plot zoned mixed-use – and was therefore targeted to developers.

A local investor, however, secured the property at auction.

CBRE’s Julian White and Dylan Kilner were the marketing agents.

The site (highlighted, front, centre), is about 400 metres from the Anzac train station, under construction as part of the $11 billion Metro Rail Link. The Melbourne CBD is just over a kilometre away.
The auction of 100 Park Street, South Melbourne.

The agents promoted the location, about 850 metres from Crown Casino, and a kilometre from the South Melbourne Market.

They also touted the site’s redevelopment potential: the land at the north-west corner of Kings Way, could be considered for a structure rising 60 metres.

The site was once proposed for a major residential redevelopment containing 67 residences in a 19-level building.

CBRE interviewed Salvatore Malatesta, the operator of South Melbourne cafe St Ali , as part of the marketing campaign for nearby 100 Park Street.

Mr White said 100 Park Street is the suburb’s seventh freehold office sale this year.

“More owners are looking to sell to capitalise on the current market conditions, as the shortage of Melbourne CBD office supply reaches a 10-year high,” Mr White said. “With rents in the city fringe climbing at 16 per cent over the past 12 months, owner-occupiers, tenants and investors are scrambling for space, which is driving strong sales results”.

Mr Kilner added that South Melbourne “is now the city’s most in demand city fringe market”.

“Access to beachside suburbs, St Kilda Road and the Melbourne CBD coupled with South Melbourne’s famous cafes like St. Ali are what makes the suburb so appealing to all buyer types,” the broker said.

South Melbourne is set to benefit from the Victorian Government’s $11 billion Anzac Station development at the intersection of Park Street and St Kilda Road, approximately 500m from the property – allowing easy access to the Melbourne CBD and inner northern suburbs – the agents added.

Last November we reported that Melbourne developer Tim Gurner secured a 1531 sqm development site at 77 Park Street and 286 Kings Way in the suburb.

Recent South Melbourne commercial sales. Source: CBRE.

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Marc Pallisco

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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