1890s Carlton terraces listed for $9m-plus as student accommodation asset
Two historic terraces on the fringe of Melbourne’s CBD, currently configured as student accommodation, have been listed for sale.
The three-storey buildings, which together house 20 accommodation rooms, are part of Drummond Terrace, one of Melbourne’s best-preserved and most distinctive rows of Victorian-era terraces.
They are located in Carlton, within easy reach of the University of Melbourne and RMIT and close to an array of public-transport options.
Colliers agent Alex Browne says the listing is a rare opportunity to secure a characterful freehold asset with strong revenue prospects on the city fringe.
“For prospective student tenants, the location can’t be beaten, and the buildings themselves are iconic,” he says.
The two buildings, known collectively as Cydelia House, were amalgamated and refurbished in 2016-2017, creating boutique purpose-built student accommodation (PBSA).
Of the 20 accommodation rooms, 16 are self-contained, with the remaining four sharing facilities. Cydelia House also features communal living, dining, study and kitchen areas, outdoor space and on-site parking accessed via Mission Place at the rear of the property.
The vendor, a not-for-profit organisation, has been renting the rooms to the University of Melbourne and is taking the opportunity to sell now that the university’s lease has expired, Browne says.
The property would suit an owner-operator or investor, he adds, and there is potential to develop additional accommodation units, subject to council approval.
“It’s a property that you could take over with nothing more to do, but there is significant scope for improvement, too,” Browne says.
Interested parties so far have been drawn in by the location, he adds. In addition to its proximity to the universities, Cydelia House is just metres from the UNESCO heritage-listed Carlton Gardens and Royal Exhibition Buildings.
It’s also close to the Royal Melbourne, Women’s and Children’s hospitals in Parkville and the St Vincent’s, Eye & Ear and Epworth Freemasons hospitals in East Melbourne and Fitzroy.
Train stations and tram lines are within a 10-minute walk, and there is an abundance of shopping and amenities in Carlton and at the northern end of the CBD.
The history of Drummond Terrace is another draw. Owner and architect Walter Scott Law erected the seven houses that comprise the row in 1890-91, designing them in the so-called boom classical style.
The row’s eye-catching form – with a three-tiered arcade on the street facade and bay windows on the ground floor – is indicative of the style, and today Drummond Terrace stands as one of the grandest boom classical examples in Melbourne.
Browne says the distinctive, carefully preserved architecture helps elevate the offering and will allow the new owner to market the units to more discerning renters.
“It is a true boutique building that has captured many people’s imaginations over the years,” he says.
Browne is fielding expressions of interest above $9 million.
