Underutilised South Melbourne blocks hit the market
Two more small South Melbourne investments with development upside have hit the market.
In what is expected to be the priciest deal, the Flinkier family is selling a Kings Way block stretching from Bank to Fitzpatrick streets.
The vendor operated a car yard from the 696 square metre site for a decade until 2007.
More recently it has been a drive-through café turned Thirsty Camel; it returns annual rent of $250,000 on a lease expiring next year – or 2025 if the bottle shop exercises its last renewal.
Any redevelopment of the Mixed Use zoned land would block north facing views of four storey terraces developed in 2018 by Gurner at the south west corner of Kings Way and Fitzpatrick St.
Colliers’ Daniel Wolman, Tom Isaksson, Leon Ma and Oliver Hay are the agents.
The guide is $5.5-$6 million.
Meanwhile near the top of Clarendon Street, one of two buildings for years occupied by Total Tools is also for sale.
The hardware group could be a suitor for the 327 sqm parcel at #174-180 – in 2016 it paid $5.985m, or $2m over guide, for the neighbouring property (#182-188, on 416 sqm).
Other potential occupiers, as well as investors and developers, are also expected to look in (story continues below).
The same agents have the listing.
“Despite, and perhaps in some ways because of the challenges of the past year and a half, we are seeing a momentum building in the city fringe market when it comes to demand for office assets,” Mr Isaksson said.
“Clarendon St is an exceptional and tightly held inner-city location…moments away from the Melbourne CBD, surrounded by outstanding lifestyle amenity including popular cafes, restaurants, gyms, shops and public transport,” he added.
“The site benefits from a flexible Commercial 1 zoning which means that it could be unlocked for higher order boutique development down the track”.
The listings come a fortnight since we reported former Piping Hot owner Mark Johannsen put up for a sale an ex-Guides Victoria office, at 101-105 Clarke St, on the north east corner of Ross Place.
That asset – coincidentally also being marketed by Colliers – is expected to sell for about $10m.
In April, Fortis outlaid $5.05m for a 297 sqm triangle shaped site at 313-317 Kings Way.
Also this year that developer spent $12m on an 850 sqm Commercial 2 zoned block at 34-40 Eastern Road, South Melbourne.
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