Melbourne

East Melbourne strata owners capitalise on developer demand

A commercial building in the tightly held pocket of East Melbourne has sold for $12 million after eight strata owners banded together to sell the prime development opportunity.

05 Feb 2018

A commercial building in the tightly held pocket of East Melbourne has sold for $12 million after eight strata owners banded together to sell the prime development opportunity.

Josh Rutman, Nick Lower and Jimmy Tat of CBRE were exclusively appointed to market the two-storey freehold property at 204-206 Albert Street. The site sold to an interstate developer following a Public Tender campaign that received nine offers.

Mr Lower said: “Strategic CBD and inner-city landholdings continue to attract not only residential developers, but also those looking to deliver high quality commercial office projects looking to capitalise on the restricted supply of quality accommodation in Melbourne.”

“The office market in locations such as East Melbourne, Cremorne, Abbotsford and Fitzroy continues to go from strength to strength, particularly in terms of tenants willing to pre-commit to space. This has caused office rents in those areas to reach such a level, that it is becoming more cost effective for developers to deliver office projects in comparison to residential.”
 
Mr Tat added: “The scarcity of developable land in East Melbourne means demand is far outstripping supply, and despite the property having heritage overlay plus height and setback restrictions, the flexible zoning attracted strong interest from local and off-shore parties. Key Melbourne suburbs continue to attract the highest quality developers, and perceived market conditions rarely seem to sway buyers when prime real estate opportunities, such as this, come to the market for public competition.”

“As a result, the owners recognised the value and demand for their Albert Street property and saw the opportunity to sell the freehold land for a premium price.”

Built in 1900, the property is erected on a 929sqm site and offers triple street frontage of approximately 90 metres. It comprises eight strata suites which are currently used for both office and medical services.  
 
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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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.