Strengthening investor appetite for development sites has underpinned the sale of a former North Adelaide pilates studio at a hotly contested auction.
More than 50 people attended the auction of the 320sqm landholding at 125 Melbourne Street, which sold under the hammer to a private investor for $850,000.
Located just three kilometres from the central hub of Adelaide, and within a short walk of the redeveloped Adelaide Oval, the single storey shop front and rear lean-to was taken to the open market with vacant possession.
CBRE’s Ben Heritage, who negotiated the sale in conjunction with fellow agent Will Brown, said the property’s development potential and flexibility in a high profile location attracted strong buyer interest.
“Given its main street location, the site attracted significant interest from a mix of owner occupiers, investors and developers during the sale process,” Mr Heritage explained.
“Properties with prime main street locations such as Melbourne Street are attracting strong prices in today’s market, especially if they’re underpinned by either a strong lease covenant or some form of development upside.”
Mr Brown said the sale followed a strong period of activity in Adelaide’s development site market.
“Following the successful campaign of 100 Prospect Road last month, this was another great success that demonstrates the current demand for well-located properties with future development potential,” Mr Brown said.
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