Melbourne

Hammer falls at $14.5m on former Melbourne laneway nightspot

McKillop House – the home of a former Melbourne laneway nightclub – has sold for $14.5 million after a hotly contested auction that attracted almost 300 people.

18 Oct 2018

McKillop House – the home of a former Melbourne laneway nightclub – has sold for $14.5 million after a hotly contested auction that attracted almost 300 people. 

A Melbourne developer fought off strong competition to secure the vacant freehold building at 12 – 14 McKillop Street – located between the new 405 Bourke Street development and CBUS’ recently acquired 140 Queen Street. 

CBRE’s Melbourne City Sales team of Mark Wizel, Josh Rutman, Nathan Mufale and Dylan Kilner managed the sale campaign

“In front of more than 280 attendees, including a number of prominent industry players, bidding commencing at $8 million and quickly rose to $10.2 million as four local and overseas bidders pursued the property. Following several referrals to the overseas-based vendor, the property was declared on the market and eventually sold for a strong price of $14.5 million,” Mr Wizel said. 

“The heritage-listed property, which will require significant refurbishment to reach a standard for future retail or office occupation, sold for a building rate of approximately $13,000 per square metre – a rate that is normally reserved for finished product in the Melbourne CBD.” 

Mr Wizel said the sale result highlighted the demand for well-located assets in the Melbourne CBD. 

“There are very few sub $20 million assets like this remaining in the Melbourne CBD. This transaction reflects the continued flight to quality occurring, where prominent groups are looking to invest in proven locations, even if this means they need to pay a premium for the opportunity.”

The property is located behind the former Kozminsky Jewellery building, which sold 12 months ago, for more than $7 million. 
 
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CBRE Group, Inc. (NYSE:CBRE), 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 2017 revenue). The company has more than 80,000 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.