However, and as is increasingly the case along the tree-lined boulevard, the office is expected to arouse interest from residential developers who may rebuild the site as apartments, capitalising on unobstructed westerly bay, and easterly park views.
Next door to The Fawkner Centre, at 505 St Kilda Road, residential developers recently demolished and replaced what was considered the boulevard’s first high-rise office building.
Next door again, the Aviva office at 509 St Kilda Road – also on a 6070 square metre “double-block” (and on the park) sold to residential developers for about $55 million in mid-2009. At least two major towers are mooted for this site.
Elsewhere in the immediate area the Clemenger House office, on a 4645 square metre block at 474 St Kilda Road transacted recently to China-based residential developers for $40 million. That site was not parkside, but had three street frontages and the potential for views.
Lemon Baxter directors Chris Curtain and Michael McClusky are marketing the asset for the Schwartz family, which is currently purchasing a Sydney hotel for about $100 million.
The Schwartz hospitality portfolio also includes the Victoria Hotel, in town. In Sydney, it owns the Mercure in George Street, Hotel Ibis and Rydges in World Square, the Sebel in Surry Hills and the Holiday Inn at Sydney Airport. It also owns Canberra’s Olims Hotel.