Private Melbourne property investors, the Lazarovits family, have put a long-held Melbourne CBD commercial property on the market with expectations of $40 million or more.
Known as Invicta House, the historic seven-storey commercial building stands at 226-232 Flinders Lane in the heart of the city.
It is currently home to a Victoria Police station and Greenhouse Backpackers, which is part of the Friendly Group controlled by the Lazarovits family.
Colliers International’s Daniel Wolman, Matthew Stagg and Oliver Hay have been appointed to sell the property, which was acquired by The Friendly Backpacker in 1998 for $2.9 million.
The building’s gross area is 6482 square metres with an underlying land area of 741 sq m and a frontage to the busy Flinders Lane of 18.22 metres.
“Invicta House has stood proudly in the heart of Flinders Lane for approximately 100 years,” Mr Wolman said.
“Invicta House is a dominant Melbourne CBD freestanding opportunity suited to investors, owner-occupiers and developers seeking to capitalise on the upside flexibility of this unconquered CBD offering.”
The basement, ground floor and levels one and two are used by Victoria Police as a police station. There is also a 15 square metre retail tenancy on the ground floor, while the upper floors and rooftop are occupied by the Greenhouse Backpacker.
The offering comes as investors press hard for CBD properties with secure income.
Last month, a Chinese investor outgunned the owners of the nearby Rialto Tower to buy a five-level building on yield of just 2.9 per cent.
The fully leased retail and office property at 26-32 King Street, across the road from Melbourne’s most famous office tower, sold for $11.98 million. It last traded for $5.1 million in 2010 on a yield of 7.4 per cent.