A local developer has bought a vacant office and warehouse building with development potential in Flemington in Melbourne’s inner northwest for $10.2 million.
The 2,169 sqm building was located on a 2,222 sqm parcel of commercial zoned 1 land at 17-31 Newmarket Street, with a 54-metre Newmarket Street frontage.
Situated just off Racecourse Road, the property generated an estimated fully leased income of $300,000 per annum.
Knight Frank’s Matthew Romanin, Nick Bisset and Joel Davy sold the property through an international expressions of interest campaign.
Romanin said the campaign demonstrated there was strong demand for quality investment assets with development potential in Melbourne.
“We fielded more than 120 enquiries for the property, which resulted in six offers from potential buyers,” Romanin said.
“Buyers were drawn to the prime large-scale property due to its size, particularly within the highly sought-after blue-chip location of Flemington, and the fact that it offered tremendous development upside.
“The campaign yielded interest from a variety of buyers, including developers, owner occupiers and land bankers.”
Bisset said the Flemington property had a flexible and highly desirable Commercial 1 Zoning, and was suitable for a multi-level commercial or residential development, subject to council approval.
“It would also suit alternative development outcomes such as build-to-rent and co-living, for example,” Bisset said.
“The location is ideal, being within walking distance of public transport including the Newmarket Train Station and tram line route.
“The site also has total ease of accessibility to major road arterials and Citylink.”
The deal comes after Singapore-listed Frasers Logistics & Commercial Trust bought three newly built logistics warehouses in Truganina in Melbourne’s west for $61 million in June.