Richmond, Fitzroy North sites snapped up amidst ongoing appetite for development
A local property developer has secured one of the best development opportunities to hit the Richmond market in recent years.
Colliers International’s Ted Dwyer, Peter Bremner and Jeremy Gruzewski have sold a substantial site at 195 Lennox Street, Richmond for $9.25million to Flagship Property Holdings, the developers behind the award winning Sunday Apartments in Southbank.
The 1,482sqm site would allow for sweeping panoramic views to the CBD and beyond from any future multi-storey development (STCA). It is currently home to a quality, two-level office building of 1,050sqm with 17 on site car parks.
The site was immediately surrounded by quality retail, public transport and lifestyle amenity and there was town planning precedence of seven to 14 storeys in the immediate vicinity.
“This can only be described as one of the best development opportunities to hit the market in recent years,” Mr Bremner said. “Perfectly positioned to offer future residents an ideal Richmond lifestyle, this site also has potential to provide stunning views from every aspect due to its enviable location on top of the hill.
“The contest among both developers and investors was strong, with the property even exceeding price expectations to record an outstanding land rate of $6,241/sqm.
“This particular pocket of Richmond is currently experiencing a flurry of activity and we expect it to continue to be targeted by owner-occupiers, investors and residential or hotel developers."
Above: View from 195 Lennox Street, Richmond
The significant sale comes just a few weeks after another local developer snapped up a high profile, permitted development site in Fitzroy North.
Goldfields Group has purchased a 1,083sqm mixed use site, permitted for 83 units, at 243 Queens Parade for $8.6million in a deal, negotiated by Mr Dwyer, that has seen the property more than double in price since August 2013.
The property changed hands for $4.1million in 2013, when local developer Adam Wulff, who was also involved with and represented the vendors of the Lennox St property, acquired the property at the heart of Fitzroy North’s increasingly popular retail precinct in collaboration with Paul Hayward of Carta Group. The Clifton Hill sale was concluded prior to auction and amidst keen interest for more than $4 million – a price that was substantially above expectations at the time.
“Late last year, Mr Wulff received town planning approval for an 11-level project designed by local architecture practice, Fieldwork Projects,” Mr Dwyer said. “The permit in place for 83 units attracted significant interest and resulted in a quick sale for a strong price of $8.6million – more than double the amount it sold for in 2013."
Mr Dwyer said Melbourne’s trendy inner north was becoming increasingly popular with residential developers.
“Opportunities in Fitzroy North are scarce – further north, Preston and Thornbury are flooded with development opportunities,” he said. “Fitzroy North is an established residential suburb, offering multi-million dollar terraces.
“Fitzroy North is growing in popularity as a development opportunity, in particular due to its proximity to the CBD as well as good public transport and retail amenity. Considering the fantastic surrounding retail amenity along Queens Parade and nearby on Northcote’s High Street, and the potential for a future development to have, development opportunities in the area are being snapped up quickly.”