International development firm Greystar has marked the topping out of its second build-to-rent project in Melbourne.
The two-tower project on a site of more than 3300sq m at 35 Claremont Street at South Yarra will provide 617 build-to-rent apartments and 2000sq m of office space.
The development on the largest undeveloped landholding in the Forrest Hill Precinct has an estimated that the end value of $500 million.
The project was designed by Fender Katsalidis.
Work began on the development in 2022.
One of the highrises, the 30-storey Yarra Street Tower will comprise 382 in a mix of studio, one bedroom and two bedrooms and also includes a rooftop saltwater spa, gym, games room and co-working space.
The other, the 21-storey Claremont Street Tower, comprises 235 studio apartments and was completed in May.
A laneway connects the towers at the ground floor and incorporates retail space.
The South Yarra tower is the first under the Urban Living brand and model created by Greystar to address the needs of Australian renters.
The towers are about 4km from the Melbourne CBD and near the South Yarra train station as well as other transport networks.
Greystar also recently topped out a three tower build-to-rent project, the Gladstone, at South Melbourne which will have 700 apartments when it opens for lease in October this year.
The firm is solely focused on build-to-rent in Australia with 1900 apartments under construction in a pipeline valued at $2.3 billion.
Outside Australia Greystar invests in, develops and manages rental housing, logistics and life science projects.
It is the largest apartment operator in the US and manages more than 966,000 apartments internationally with $78 billion in assets under management.
Greystar Australia managing director Matt Woodland told The Urban Developer that the company would next focus on a project in Melbourne’s Kensington and another project in Sydney’s Zetland.
“We will be starting construction soon on a 400-unit deal at Kensington ... right between Macaulay and Kensington stations,” Woodland said.
“That will start construction in February and take about 24 months to deliver, so it will be ready in 2027.
“We have a 200-unit project which will be starting construction ... in Zetland, in about a month, so mid-September.”
Woodland also said that Greystar eventually planned to move west—first to Adelaide and then Perth, but not in the short term.
Brisbane is on Greystar’s list but other factors are preventing projects moving forward.
“We continue to look but it’s a difficult market to build in right now as it has very expensive construction prices with all the infrastructure that is getting done,” Woodland said.
