US apartment developers quietly trade prominent Fitzroy site
Two US based developers and investment houses have quietly traded Fitzroy’s outgoing Streamline Press plant.
Pembroke Group will now replace the 2556 square metre site, 155 Johnston Street, also the north west corner of Argyle and Young, with a build to rent tower, after outlaying $34.44 million to seize control from Greystar, which agreed to pay a speculated $32m at the end of 2022.
An 11 storey complex with 200 dwellings, a resident lounge, co-work facilities, gym, BBQ area and activated rooftop is planned.
Also with basement car parking and bike storage, the project’s end value is put at c$200m.
Greystar will be retained for project management.
Pembroke enters Australian BTR sector
Diversified Pembroke holds significant residential and commercial product globally.
In Melbourne it owns the prominent T&G Building at 161 Collins St, on the south west corner of Russell.
“Strategically this [Fitzroy] acquisition establishes a strong foothold for Pembroke in the Australian BTR market,” Joe Fitzpatrick, Pembroke’s regional director, Australia, said.
“Addressing a chronic shortage of housing is high on the Australian government’s agenda, and the BTR market in particular offers huge opportunity for us at Pembroke as we double down on our global diversification strategy,” he added.
“As global city specialists, Pembroke has a proven track record of delivering thoughtfully developed, high-quality, urban properties, and we’re thrilled to bring this expertise to the Australian residential sector,” according to the executive.
Greystar managing director, Matt Woodland, said there is urgent need for attainable and high quality housing options in Australia, particularly Melbourne.
The group last August topped out The Gladstone, a trio of apartment towers in South Melbourne – on a site bought permit-ready from Chip Eng Seng in late 2020.
With 722 dwellings, that is Victoria’s largest BTR project to date.
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