A Singaporean developer has swooped on a commercial asset at one of Melbourne’s busiest intersections which was marketed permit-ready for an eight-level apartment building.
The 1460 square metre holding at the south-east corner of Bell and High streets, in Preston (pictured, top), was marketed by Knight Frank’s Andrew Greenway and Tom Zhou with Jellis Craig’s Richard Rose.
It includes an office and showroom with a combined lettable area also measuring 1460 square metres.
Part of 176-180 High Street is occupied by California-based weight management and nutrition company, Jenny Craig, however the property was offered with vacant possession.
The land is expected to make way for residential complex containing three shops and 73 dwellings – some of which will capture views of the CBD about 7.5 kilometres away.
“The campaign generated over 100 enquiries with three bidders competing at auction, all developers,” Mr Greenway said. “A number of potential owner occupiers showed interest during the campaign and attended the auction however didn’t get the opportunity to bid”.
The sale price of $4.25 million was $600,000 over reserve.
Previously regarded as a working-class suburb, Preston now carries a median house price of more than $1 million. Units in the area now average $600,000 according to Real Estate Institute of Victoria data, which was used by agents as part of the marketing campaign.
The sale campaign also touted the high quality of the existing structure and the location – walking distance to the Preston Market.
One of the owners of that market, Salta Properties, directed by Sam Tarascio Junior, last year paid $8 million for a 1761 square metre site at 30 Cramer Street, Preston, which was offered for sale with a permit for a nine-level apartment building containing 95 flats.