Melbourne, 18 November 2015 – Strong developer demand for well-located city fringe opportunities has underpinned a $3.95 million sale in Collingwood.
CBRE’s Melbourne Victorian Development Site team of Jamus Campbell, Josh Twelftree and Mark Wizel negotiated the sale of the 915sqm site at 73-77 Sackville Street, which was marketed as an unpermitted development opportunity.
The site presented some challenges in the campaign, with the dated office and warehouse accommodation providing no holding income and the Commercial 2 zoning limiting residential development potential. However, despite this, Mr Twelftree said strong interest was received from a range of local and offshore developers who recognise the potential of the Collingwood area in light of the proposed rezoning of Commercial 2 properties.
“The competitive Expressions of Interest campaign extracted multiple prominent developers and investors from the market, and contributed to the significant sale price which represented a rate of $4,316 per sqm.”
The 73-77 Sackville Street property is the sixth major development site of Commercial 2 zoning to be sold by CBRE this year.
“The high developer demand for Collingwood sites with Commercial 2 zoning has been underpinned by the Victorian State Government’s “Plan Melbourne 2050” initiative, which earmarked Collingwood for significant urban renewal,” Mr Campbell said.
“The area surrounding the site is set to evolve into a vibrant, mixed use precinct which will offer cafes, restaurants and retail amenities alongside office and residential accommodations.”
“To facilitate this vision and enable residential development, the City of Yarra are considering rezoning Commercial 2 properties to Commercial 1, which has resulted in a flurry of savvy landowners in Collingwood making the most of record prices being paid,” Mr Campbell added.
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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.
