A South Melbourne icon, the Water Rat Hotel, is being offered for sale.
Built in 1858, the popular venue located at 256 Moray Street was originally name Druids Hotel and in more recent years, the Freemason’s Hotel. The venue has a rich history, being the location of the 1973 murder of Painters and Docker Union Secretary Pat Shannon.
The 513sqm venue underwent major renovations and opened as the Water Rat Hotel in 1991, where it was one of the first hotels in South Melbourne to introduce outdoor seating.
Mr Last said the property‘s position within South Melbourne would attract strong buyer interest.
“South Melbourne has become one of Melbourne’s most desirable suburbs over the past five years, with a significant uplift in investor and developer demand for well-located, mixed use assets. In particular corner properties with a mixed use zone have become one of the most highly sought after assets due to their high exposure nature and potential for medium to long term holding income,” Mr Last said.
“Given the prime corner location and substantial existing improvements, the Water Rat Hotel provides ultimate flexibility for investors, developers and future owner occupiers. We expect there to be strong demand from both local and offshore parties given mixed use zoning and development potential for the property.”
Located on a 314sqm site, the Water Rat Hotel is a two-storey venue comprising an outdoor seating area, expansive rooftop terrace, two separate bar areas and function space on the first floor. With frontages to Park and Moray streets, the property benefits from high a profile position within walking distance to the Clarendon Street retail precinct.
Mr Connolly said the property’s zoning would be a strong selling drawcard.
“With South Melbourne currently experiencing a major shortage of mixed use commercial properties with significant rental upside, we envisage that, if positioned currently The Water Rat Hotel can take full advantage of the rental uplift that owners are seeing for similar assets in the area,” Mr Connolly explained.
*South Melbourne has the third highest rate per square metre for residential property in Melbourne, sitting closely behind Middle Park and Albert Park, with a rate per square metre of $10,809/sqm and a median house price of $1,700,000.
Mr Last added: “South Melbourne boasts a population of 12,000, and is growing rapidly due to it being located next to the Melbourne CBD, which is now Australia’s most densely populated area. South Melbourne will continue to grow due to the high demand for beach side suburbs in close proximity to the Melbourne CBD.”
Expressions of Interest close November 2.
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