Steller sells Balaclava site at a loss

EXCLUSIVE

Artist’s impression of the five-storey office permitted to replace the 301 sqm plot at 60-62 Nightingale Street, Balaclava.

A Balaclava patch of dirt controlled by local developer Steller, which went into receivership last month, has sold for a speculated price of close to $2 million.

The site (pictured, outlined, top) last traded for $2.375 million in August 2017 – about a month before the peak of Melbourne’s last property cycle.

At 60-62 Nightingale Street, the 301 square metre holding was permitted for a five-storey office with basement car park and roof top terrace.

The block abuts the train line between the Balaclava and Ripponlea stations, about seven kilometres south of the city.

The Carlisle Street retail strip, which Gross Waddell agents Alex Ham and Benjamin Klein called the suburb’s “most eclectic and successful [shopping] thoroughfare”, is about 200 metres away.

Mr Ham said the “hotly contested” site attracted four unconditional offers.

More than 80 enquiries were received, the broker added.

It is being purchased by another Melbourne-based builder.

Last November, we reported that a site in the immediate vicinity, 23 William Street, sold to a developer for $9.05 million – reflecting a record high suburban land rate of close to $9000 per square metre.

Reception centre Red Scooter sits between 23 William Street and 60-62 Nightingale Street.

Other Steller controlled sites have recently been listed in East Keilor, Hampton and South Melbourne.

The high-profile Continental Hotel in Sorrento is also for sale, mid-construction.

In June, we reported that Steller sold an office investment at 260-264 Highett Road, Highett, for $3.4 million – again via Gross Waddell.

The same month, we also reported that Steller had vacated its headquarters at 840 Dandenong Road, Caulfield East – leaving landlord, the Zagame family, to seek a re-let.

Steller also quit a Moorabbin warehouse at 32-44 Keys Road which had a lease expiring next July – as we reported in this item.

The Nightingale Street site (outlined) abuts reception centre Red Scooter.

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Marc Pallisco

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

Marc Pallisco
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