Melbourne Fringe Office Tower Comes to Market

A 19-storey commercial tower has come to market in Melbourne’s city-fringe office heartland.

The tower at 10 Queens Road site on a 2300sq m site offers a diverse income stream from multiple tenancies and a 50 per cent lease to LK Property Group.

A price guide of $50 million has been put forward for the tower, which comprises 8815sq m of gross floor area.

Oliver Hay, Daniel Wolman, and Leon Ma of Cushman & Wakefield Melbco Middle Markets are handling the sale via an expressions-of-interest campaign.

The agents said the property’s “versatile nature lends itself to various end-users, from corporate headquarters for owner-occupiers to development potential encompassing residential conversion, build-to-rent, hotel, service apartments, and aged-care facilities”.

“As interest rates stabilise, we anticipate heightened investor appetite, especially in the wake of Melbourne's increasing immigration and transformative projects like the Metro Tunnel reshaping the CBD and city fringe,” Hay said.

“Ten Queens Road’s potential for improvement not only establishes a robust foundation for future enhancements but also positions it for capital growth and sustained income opportunities, aligning with prevailing tenancy demands and market trends.”

The tower has views over the Albert Park Golf Course and is about 4km from the CBD.

▲ The tower at 10 Queens Road is expected to fetch about $50 million.

Queens Road had a history of private mansions and older apartment buildings that gave way to office blocks from the 1970s onwards.

However, late last year developer HOME filed plans for a build-to-rent project for a 6974sq m site at 6-9 Queens Road.

The proposals comprise 560 apartments designed by Cox Architects in a mix of studio, one-bedroom, two-bedroom and three-bedroom apartments plus a ground floor cafe and a public space connecting Queens Road and Queens Lane.

A 19th century mansion on the property would be restored as part of the project.