$6.6 million Site Sale in Fitzroy Tipped to Become Residential Development


A Melbourne-based developer has purchased a commercial property with development potential in Fitzroy, which is tipped to become a residential development should the purchasers gain approval for a multi-storey project on the Webb Street site.

The developer paid $6.6 million for the 93-97 Webb Street property following a hotly-contested auction. This is the first time the 989 sq m property has been placed on the market for 30 years.

According to the marketing agents, Teska Carson’s Tom Maule and Matthew Feld, who sold the property in conjunction with Nelson Alexander’s Peter Smyth and Simon Verduci, the auction drew a large crowd with five bidders vying for the development opportunity.

"We were inundated with enquiry for this property from local, interstate and off-shore buyers for what is a first rate acquisition opportunity in a prime inner Melbourne location,’’ Maule said.

He said with the surge in demand from owner-occupiers downsizing to local apartments, the focus of the proposed project would look to provide a product that was tailored to their requirements.

"The boutique apartment market has very much matured in recent times with the emphasis now on satisfying a growing owner-occupier predilection for quality two and three bedroom apartments within relatively close proximity of their existing homes.

"This allows downsizers, in particular, to take advantage of a potentially financially attractive move, including off-the-plan stamp duty savings, to a familiar area, and often closer to essential amenities such as shopping and transport,’’ Maule said.

Feld said developers were now also providing prospective apartment purchasers with the opportunity to influence the layout and design of apartments.

"These are apartments that are purchased by people who will actually live in them and, for most of those people, over a long period of time, and so it stands to reason that they wish to influence the end product as much as is possible and that may even extend to landscaping and external finishes,’’ he said.

Located within the heart of Fitzroy, metres from the Smith Street retail precinct, the 989 square metre site is zoned Commercial 1, has frontages of 23 metres to Webb Street, 13 metres to Charles Street and a third access via a right of way on the eastern boundary.

The property, which includes a single level, 989 sq m brick warehouse and office, was sold subject to a short term lease-back, expiring February 2018, at a rental of $150,000 per annum plus GST.

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