Vast potential for future use set to spark buyer contest in heart of Melbourne CBD education precinct
A 19-level office building on the doorstep of RMIT University in the Melbourne CBD is expected to generate strong interest in the vicinity of $50million when it hits the market.
Colliers International’s Oliver Hay, Daniel Wolman, Matt Stagg and Trent Hobart, in conjunction with Charles Vraca of Melcorp, have been appointed to sell 50 Franklin Street on behalf of a consortium of private investors, in an outstanding CBD office investment opportunity with significant conversion, development and value-add upside.
The 19-level, 10,900sqm building with basement car parking will be offered with vacant possession following the departure of Salmat.
“This is a very rare opportunity in the CBD, particularly in a prime location such as this one on the doorstep of Melbourne’s education precinct and at the epicentre of high rise residential development,” Mr Hay said. “This is a sizeable blank canvas for a purchaser – it is ideal for investment, conversion or development – in an unprecedented opportunity in the Melbourne CBD market this year."
Situated on a 2213sqm site within the civic core of the Melbourne CBD, 50 Franklin Street is at the heart of one of the most vibrant and diverse precincts in the city surrounded by a range of major education, retail, commercial and residential landmarks. It is well serviced by public transport including Melbourne Central train station and the Queen Victoria Market tram interchange.
The property has a long history of attracting high quality tenants including Qantas, who occupied the whole building for many years, and most recently ASX-listed marketing services group Salmat.
“The education sector is one of the Melbourne CBD’s largest industries and occupiers of real estate,” Mr Wolman said. “50 Franklin Street is situated in the heart of the Melbourne CBD education precinct and is surrounded by some of Australia’s most respected universities including Melbourne University, RMIT University and Victoria University. The building has sought after 9B certification, enabling it to be leased to education tenants.
“Education groups are also moving to owner-occupy campuses in order to secure scarce Melbourne CBD and city fringe sites, with recent examples including Haileybury College and the Melbourne Institute of Technology."
Mr Hay said the property was also well placed to benefit from strata subdivision and coversion to other uses, subject to the relevant approvals.
“Strata office accommodation is a very attractive alternative to leasing given the current record low interest rate environment,” he said. “Many small-to-medium business owners are buying strata office floors as part of their self-managed superannuation funds."
Mr Wolman said 50 Franklin Street was well placed to capitalise on this demand given it was already strata subdivided as 18 office floors with basement parking registered on separate titles.
“Given its prime Melbourne CBD location, the building also lends itself to a number of exciting conversion opportunities, including student accommodation, hotel or residential use,” he said. “It offers flexible and efficient floor plates with excellent natural light from two sides."
The property is for sale by Expressions of Interest.