A freshly leased new office, built on the old Duchamp clothing headquarters in Richmond, has come to market.
Beams Projects bought the 45 Wangaratta Street site in 2016 and built a small tower of six whole floor offices. They were going to be sold as individual strata investments but now the 1413 sq m project is offered as a$20 million-plus investment.
JLL agents Josh Rutman, Piers Jalland, Tim Carr and MinXuan are running the expressions of interest campaign.
“There is a distinct lack of quality investment stock on market and the building leased exceptionally well throughout the lockdown period,” Mr Rutman said.
The office is located just behind the Corner Hotel and Richmond railway station – a stone’s throw from the hot Cremorne market on the other side of the tracks.
There are six floors of office space ranging from 90 to 289 sq m spaces, a ground floor cafe and end of trip facilities for cyclists. Tenants include the building’s designer, MAArchitects.
JLL research shows the sub-$50 million office market is selling like hot cakes. The first quarter of 2021 has notched up $202 million worth of deals compared with just $45 million during the truncated first three months of 2020.
Recent deals struck by JLL include 40 Barry Street Carlton which sold for $5.33 million and 883 Toorak Road, Camberwell which fetched $3.4 million.
Records show the vendor of the 644 sq m Carlton office was the Victorian branch of the shoppies union, the SDA.
The buyer of the 369 sq m Camberwell property is understood to have exited the Rialto towers in favour of the smaller suburban office.
“These sales are a clear indication of the strong pent-up demand for strategically located office properties in Melbourne’s city-fringe, particularly from owner occupiers looking to capitalise on low interest rates,” Mr Rutman said.
Developers are still active, with one, as yet unnamed party, really stretching to pick up a shed, on the east side of Church Street next door to the REA Group’s headquarters.
The 665 sq m industrial property at 1-7 Kingston Street sold for $9.05 million – 35 per cent above its $6.7 million reserve.
Records show it had been owned by metals retailer and distributor George White & Co since 1979. It’s on a 726 sq m parcel of land.
Teska Carson agent Matthew Feld, Luke Bisset and Michael Ludski handled the auction.
A developer has also snapped up a 550 sq m office warehouse at 28 Cubitt Street in Cremorne for $4.65 million in a deal brokered by Teska Carson.
The classic cream-brick two-storey property is on 387 sq m of land with office upstairs and a showroom and six-car parking downstairs.
On the side
French restaurant Entrecote is moving out of Lynch’s on Domain Road, South Yarra and into Greville Street’s old Fog space.
Records show the 500 sq m restaurant at 142 Greville Street is owned by private investor Patricia Ilhan who made a motza on the Crazy John’s phone retailing business in the early 2000s.
It is understood the 10-year leasing deal was negotiated between Mrs Ilhan’s investment advisor Joseph Chahin and agents Vinci Carbone.
Hospitality rents for this size are fetching about $200,000-$250,000 a year. The clincher for the restaurant is believed to be the large courtyard at the rear allowing for plenty of outdoor dining.
Alcaston Gallery has completed its return to the CBD opening a new exhibition space in the ground floor of 84 William Street, the gothic tower built for the Queensland Insurance Company in 2013.
The space is just around the corner from the gallery’s new offices at 50 Market Street and in the heart of the mid-town financial and legal district anchored by the city’s newest towers, Collins Arch and the Olderfleet building.
Beverley Knight started the gallery at Alcaston House on the corner of Spring and Collins streets in 1989. The gallery then spent 20 years at 11 Brunswick Street, Fitzroy before selling up last year to a surgeon.
“We are very happy and absolutely love being back in the CBD!” Ms Knight said.
The leasing deal was struck by CBRE’s Jason Orenbuch.
Inner north developer, the Ruber Group is selling a development site in the heart of Northcote.
The large 1436 sq m site at 387-393 High Street is on the corner of Separation Street, opposite Northcote Central and Plaza shopping centres.
The Commercial 1 zoned site is a large showroom leased to Sportsmart and comes with a permit for 77 apartments across nine levels.
Colliers’ agents Jozef Dickinson, Hamish Burgess and Joe Kairouz are handling the sale.
“There are no other ‘ready to go’ development sites of scale along the High Street strip, so we anticipate this property will be hotly contested,” Mr Dickinson said.
The vendor had grown up in Northcote and had always admired the site, he said.
Records show the property was bought for $5 million in 2014 and could fetch more than $7.5 million.
Across the road, both Northcote Central and the Plaza are undergoing redevelopment and up the street CRS agent Lou Montalti is auctioning a smaller 560 sq m development site at 463-467 High Street.
Historical photos show the intersection, dominated by the Carters Arms Hotel, was once quite attractive but the 1990s architecture that followed the nearby closure of the Northcote tip, has not aged well.
A chemist shop in Altona attracted the interest of Sydney buyers who flew south to check it out.
The shop was established by local pharmacist Alan Tyrrell in 1968 but was sold to Chemist Warehouse five years ago.
The pharmacy behemoth has five years left on its lease and was the lure for northern investors.
But it was a local, very local, Altona investor who bought the property at auction last week paying $2.35 million, 20 per cent over reserve.
Gorman Commercial agent Jonathon McCormack said 12 bidders competed for the 230 sq m shop which sold on a yield of 3.8 per cent.
“That’s reason for Sydney buyers – it was the lease covenant, not just a little old shop in Altona,” Mr McCormack said.
The 65 Pier Street shop is in a thriving strip and returns $88,600 a year in rent.
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