One-of-a-kind city fringe office investment or HQ opportunity

A new Melbourne office building infused with character as a tribute to Collingwood’s industrial history is being sold by Expressions of Interest.

CBRE’s Capital Markets Office team of Scott Orchard and Will Heffernan along with Lemon Baxter’s Paul O’Sullivan and Hans Fan are handling the sale of the recently completed 71 Langridge Street property, which is expected to generate interest from both investors and owner occupiers.

Offering a net area of approximately 5,364sqm plus 58 basement car parks, the seven-level building was completed last year and provides passing income from tenants in situ, fully furnished plug-and play tenancies and a fully leased income potential of approximately $3,000,000p.a net.

Centred around a private gallery and art exhibition of 32 themed pieces, the building also offers a rooftop terrace, end-of-trip and meditation facilities and a range of sustainability attributes.

CBRE Senior Director Mr Orchard said the property was a stunning example of modern office accommodation which acknowledged the character and fabric of the local sub-market and its history.

“71 Langridge Street is a truly unique office building give its art inspired placemaking and location at the core of the reborn Collingwood commercial market, and on the doorstep of both the Melbourne CBD and popular Smith Street and Gertrude Street café, dining, hospitality scene and fashion, homeware boutiques” Mr Orchard said.

The project team of architects Preston Lane, builders Hamilton Marino and interior architects Hecker Guthrie combined to deliver the building, which is situated on a prominent 1,123sqm site with 52 metres of street frontage.

It presents as two buildings – the eastern side featuring a brick façade and heritage loft style capped with a warehouse roof feature, tying into the modern glazed western side featuring patterned louvers of Mick Jagger and Keith Richards.

“The flexible floors offer whole or split tenancy sizes aligned with current tenant demand, and are packed with smart amenity, environmental and sustainability features, positioning the property strongly in a market with strong occupier appeal following the delivery of a number of new premium grade offices,” Mr Orchard said.

Lemon Baxter Managing Director Mr O’Sullivan noted that the building also offered significant depreciation and other financial benefits.

“A brand-new building provides for a reduced capital expenditure forecast and operating efficacy compared to older buildings, helping reduce outgoings and enhance an asset’s appeal in a competitive leasing market,” Mr O’Sullivan said.

“From an investment perspective, many people are quick to highlight the replacement cost of an asset, however in most cases they are not comparing like-for-like. But with 71 Langridge Street it is an important consideration given this a brand-new development with extraordinary attention to detail, and with all the hard work done and delivery uncertainty removed.”