Commercial Union Chambers Changes Hands for $40m

A 1939 commercial office building in Melbourne has sold for $40 million a month-long expressions of interest campaign.

The striking 411 Collins Street building was sold by a private family to Peachtree Capital managing director Greg Rosshandler whose office is located less than 200 metres away.

Chinese e-commerce powerhouse Alibaba is the anchor tenant of the Commercial Union Chambers above 7Eleven in the ground floor retail space.

The 3,267sq m freehold office was sold by Colliers International’s Oliver Hay, Matt Stagg, Daniel Wolman and Leon Ma and Vinci Carbone’s Frank Vinci and Joseph Carbone.

According to the agents, the nine-level building is a trophy investment with rare basement car parking space.

Melbourne residents have only just returned to the office after the holidays and significant lockdowns through 2020.

Despite low levels of occupancy and foot traffic during the pandemic, CBD commercial deals have been ticking on.

“The CBD is tightly held and there is a real shortage of supply and prices remain strong,” Hay said.

The nine-level reinforced concrete building was built for Commercial Union Assurance Company co-designed by Peck, Kemter & Dalton with Phillip B Hudson who also co-designed the Shrine of Remembrance.

The Commercial Union Chambers is described as a modern commercial Gothic building with a deliberate street architecture typical of the period according to the Melbourne Central City Heritage Review.