An art deco building with approval for a hotel development on Flinders Street in the Melbourne CBD has hit the market, with expectations it could join a wave of development around the precinct’s new metro station.
At 244-248 Flinders Street, the former Yooralla building is opposite Flinders Street Station and was built originally as Snow’s Department Store in the 1930s.
The property, which could fetch as much as $45 million, has been offered by a group of Malaysian investors with vacant possession and development permit for 13-storey boutique hotel.
The development proposal was granted by the city council in late 2017. It had originally proposed demolition of the existing building but was amended to retain the facade, with the 13-storey addition set back six metres behind it, council planning records show.
The property is just two doors down from where the Town Hall underground station is under construction, a key link in the city’s $11 billion Melbourne Metro Tunnel project.
“Flinders Street Station is already the busiest train station in the Melbourne CBD,” said Colliers Interntional’s Matt Stagg, who is brokering the property with colleagues Oliver Hay and Daniel Wolman.
“When the Metro Tunnel is complete, this location opposite Flinders Street Station, between Swanston Street and Elizabeth Street, will have the highest concentration of pedestrian foot traffic in the Melbourne CBD and potentially that of any capital city in Australia.”
The historical three-storey office building has a net lettable area of 3391 square metres and boasts a 20-metre frontage to Flinders Street. The development approval is for 193 rooms along with restaurants and a bar.
“This is the only and the nearest development site to Federation Square. It is also connected to Melbourne’s busiest and most popular al fresco dining laneway of the famed Degraves Street,” Mr Stagg said.
The Flinders Street offering, which could win interest from major developers, is among the first clutch of opportunities in the market as Melbourne’s long second lockdown comes to an end.
Last week a classic Collins Street office block, also built in the 1930s and now home to the head office of Chinese e-commerce giant Alibaba, hit the market with expectations of $30 million.
Meanwhile, at the Paris end of Collins Street, the four-storey Louis Vuitton building – a Renaissance-style building built in 1880 owned by the wealthy Kearney family – is expected to sell for more than $50 million.
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