Investors, owner-occupiers and developers expected to target Lennox, Stewart Street sites
One of the best development opportunities to hit the Richmond market in recent years is expected to attract in excess of $7.5million amidst a flurry of strong sales activity in the immediate area.
Colliers International’s Ted Dwyer, Jeremy Gruzewski and Peter Bremner have been appointed to sell a substantial site at 195 Lennox Street by Expressions of Interest. The 1,482sqm site would allow for sweeping panoramic views to the CBD and beyond from any future multi-storey development (STCA).
“As a quality, two-level office building of 1,050sqm with 17 on site car parks and an attractive current net rent, it will also appeal to investors,” Mr Dwyer said.
“This can only be described as one of the best development opportunities to hit the market in recent years. 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 site is immediately surrounded by quality retail, public transport and lifestyle amenity. Mr Dwyer said there was town planning precedence of seven to 14 storeys in the immediate vicinity.
195 Lennox Street, Richmond
Mr Gruzewski and Mr Dwyer are also selling a warehouse-style office building on a corner site in Richmond with redevelopment potential. The property, at 9-13 Stewart Street, is for sale by Expressions of Interest closing March 29. Agents expect it too will attract interest in excess of $7.5million.
“The two-level, 1,660sqm building currently operates as an office, and would be well suited to an owner-occupier looking for a prominent Richmond address to call home,” Mr Gruzewski said.
“But, with its mixed use zoning and position directly opposite Richmond train station, the 899sqm corner site would also be idea for a multi-storey residential or hotel redevelopment (subject to relevant approvals)."
Mr Dwyer said this particular pocket of Richmond was bustling with activity, with several notable sales taking place nearby and another significant property coming to market down the road.
These campaigns come off the back of two comparable sales nearby that achieved capital values of more than $9,000/sqm. Mr Dwyer and Mr Gruzewski have sold 5 Stewart Street, next door to their current listing at 9-13 Stewart Street, for $2.45million and 45 Wangaratta Street 300m down the road for $3.5million. Both were negotiated off market.
5 Stewart Street was a former warehouse converted to a loft-style, 300sqm office building. It was sold with vacant possession, with the purchaser intending to utilise the building for their own office.
45 Wangaratta Street was a 442sqm office-warehouse that was sold with vacant possession to a developer.
“These properties both have similarities with the properties currently for sale at 9-11 Stewart Street and 195 Lennox Street, in that they have something to offer both owner-occupiers and developers,” Mr Dwyer said. “They both offer an opportunity to acquire a rare parcel of land in a proven and tightly held location that is evolving into one of Melbourne’s most vibrant inner city addresses.
“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.”