Melbourne, 03 February 2015 – Strong investment appetite for CBD laneway properties has underpinned the sale of a former workshop and factory building for $2.55 million.
Josh Rutman, Paul Tzamalis and Tom Tuxworth of CBRE Melbourne City Sales negotiated the sale of 30 Guilford Lane, which was acquired by a local investor.
Mr Tzamalis said the site was hotly contested at auction, with three bidders and close to 200 enquires received from local and offshore groups.
“This property exemplifies the increasing demand for laneway opportunities, with the sale price representing a rate of $11,283/sqm which is significantly higher than the rate of $7,176/sqm received for a property in the same lane less than12 months ago.”
“The sale represents a 57% growth in the building rate in the precinct, which is expected to increase further as buyers demand more boutique opportunities in Melbourne’s evolving CBD,” said Mr Tzamalis.
The 132sqm property, which is currently being utilised as an art gallery and office space, offers frontages to Flanigan Lane and Guilford Lane, quality existing improvements including restoration of internal walls and ceilings, and the opportunity to renovate the space for residential, office or retail use.
“The site’s prime location on one of Melbourne’s oldest and most renowned laneways, supported by an array of trendy culinary, arts and retail amenities, was a key selling factor,” Mr Rutman said.
“The site offered buyers the opportunity to acquire space in an eclectic hub which combines Melbourne’s old industrial character and new cultural and lifestyle offerings, in addition to providing flexibility to utilise the space for residential, commercial or retail purposes.”
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.