A marathon two-hour battle between eight eager bidders has resulted in the landmark sale of a high profile, corner building on Bourke Street at a record-breaking Colliers International auction.
Oliver Hay,Daniel Wolman, Matt Stagg and David Sia, of Colliers International’s Melbourne City Sales team, sold 220 Bourke Street in the Melbourne CBD for $15,205,000 following 661 bids in front of a 300-strong crowd.
The sale price exceeded the local private vendor’s reserve by an outstanding $4,205,000 and represented a yield of 2.99% and a land rate of $75,646/sqm.
The five-level, 1,170sqm building is situated on a 201sqm site and offered a net lettable area of 1,040sqm. It has frontages to both Bourke Street and La Trobe Place and direct access to Little Bourke Street and Melbourne’s popular Chinatown precinct.
Mr Hay said the sale of the prominent building represented a rare freehold investment, development or owner-occupier opportunity in the heart of the Melbourne CBD.
“Opportunities of this kind in the heart of the Melbourne CBD are rare and as such, we witnessed a hot contest that exceeded even our expectations,” Mr Hay said. “The auction was kicked off by some offshore bidders, however the majority of the historic two-hour battle was between three local groups.
“The incredible result can also be attributed to a combination of low interest rates, strong presence of cash buyers, and local buyers who were willing to fight ferociously to get their hands on an asset that hasn’t hit the market in 80 years.
“220 Bourke Street is surrounded by some of Melbourne’s finest lifestyle amenity, boasts ample public transport options and represented a true once-in-a-lifetime investment opportunity with endless value-add potential."
The current improvements comprise a five-level freehold building with a spectacular Melbourne rooftop terrace, primed for a hospitality rooftop destination in the heart of the CBD.
The building’s prime corner location was also second to none. Situated between Swanston Street and Russell Street, the bustling location is exposed to elevated levels of pedestrian traffic as it sits in the heart of Melbourne’s eclectic mix of commercial and residential developments.
The world-famous Bourke Street Mall and Melbourne’s GPO is a mere 300m away, while major high-traffic shopping destinations including Myer, David Jones, Zara, H&M and arcades such as Midtown Plaza, Tivoli Arcade and the neighbouring Target Centre Shopping Mall are all located nearby, as are two of the city’s most prestigious and reputable tertiary education providers, Monash College and RMIT University’s Bourke Street campus.
Mr Sia said the property attracted wide-ranging interest throughout the campaign from a diverse group of buyers with its flexibility and variety of value-add opportunities.
“Not only does this building provide a unique opportunity for a future purchaser to capitalise and transform the rooftop terrace, but it also has the potential for the top two floors to be optimised and converted from private residential use to commercial space,” he said.
“The existing building also has the potential for additional levels, subject to council approval, given the neighbouring QT Hotel has established an 11-level precedent.”