Small South Melbourne arcade fetches $7.3 million from investor
A small arcade on a large Commercial 1 zoned block in South Melbourne has sold for $7.311 million.
Developers showed the most interest in 219-221 Park Street, which Dixon Kestles Simon Regan and John Pratt sold two days after the close of an expressions of interest campaign.
Close to the Clarendon Street retail strip, and the historic part of South Melbourne known as Emerald Hill, the 1011 sqm site has the potential to make way for a large-scale building, with possible development outcomes including an office, apartment building and hotel.
The property is currently configured with an open-air car park and low-rise, 620 sqm commercial complex, split as five tenancies. Occupied by retail and office users, it returns annual rent of $272,493.
Mr Regan told realestatesource.com.au that the campaign attracted interest equally from investors, owner occupiers, and developers, both residential and commercial.
Seven offers came following the expressions of interest campaign resulting in the call for second round offers.
It sold to a local investor who is expected to value-add to it once leases expire.
“Indeed with around $50 million worth of qualified and unconditional mandates looking for a home within the neighbourhood, we need to meet a couple of equally qualified and motivated vendors,” Mr Regan said.
