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Orchard Piper is readying plans for a $400-million boutique apartment project in Melbourne’s ultra-wealthy Toorak after securing a prized site on the doorstep of the suburb’s main shopping and dining strip for $67 million.
The private developer, led by directors Luke McKie and Rick Gronow, picked up the Mercedes-Benz dealership at 17-19 Carters Avenue, next to Toorak Village, after two years of deliberations with the vendors.
The site was put up for sale earlier this year by Karl Hagen and the family of his late business partner, John Worrell—whose father purchased the 3600sq m holding in 1932.
McKie told The Urban Developer its existing relationship with the Hagen family and vision for the site had helped the developer better 14 rival offers from local, interstate and international parties and secure it on a two-year settlement.
“Having a close and trusting relationship with the Hagen family allowed us to shape this deal to suit the vendors; they were interested in a high-quality outcome for the site, given their long standing ownership and history,” McKie said.
“When we entered into initial conversations it was evident that Karl wanted the site to go to a group that would respect the legacy that he and John had built together.
“We presented our vision to Karl, as well as the business partnership that Rick and I share, and I think Karl drew a lot of similarities in the partnership he shared with John over all those years.”
Orchard Piper is now readying an application for a premium-grade mixed-use precinct which will feature a high-end residential offering complemented by retail and commercial suites.
While planning is in the early stages with an architect yet to be appointed, the project’s upper levels are expected to feature serviced apartments with access to valet car parking, laundry and turn-down cleaning, as well as the project’s pool, gym and day spa.
The ground floor will likely feature a retail colonnade in a similar vein to the Westin Hotel in central Melbourne or the Calile Hotel in Brisbane’s Fortitude Valley.
McKie said designs for the revamping of the Mercedes Benz site were set to be unveiled mid-2023, with construction expected to commence, pending permits, the following year in-line with Mercedes’ lease ending.
Signalling its confidence in the project being approved, Orchard Piper has already begun discussions with potential apartment buyers eyeing the forthcoming project.
“We’ve been actively involved in the area for over 13 years, having developed six previous projects within minutes of this site,” Mckie said.
“Toorak Village is right on the cusp of a big shift and this was one of the few sites [in Toorak] where a developer would have the scale to deliver something architecturally interesting and diverse.
“We have buyers who are ready to commit to this project which allows us to manage risk in a slightly different way to the rest of the market.”
Orchard Piper, which has maintained a focus on the downsizer demographic since forming in 2009, has in that time built an impressive portfolio of high-end apartment projects in suburbs like Toorak, South Yarra and East Melbourne, now valued at over $1.1 billion.
McKie said the key to the businesses’ success had been its “single-minded vision” for boutique residential development.
“If you keep delivering the same thing, in a specific market, over a long period of time and don’t get distracted ... you end up becoming a specialist in that sector.
“We’ve never varied into other sectors of the market … it has always been downsizer apartments.
“Our acquisitions are in areas where there is a differential between median house and median unit prices. The sites we secure are always within close proximity to amenity.
“We’ve been able to consistently show people that what we market—we build and deliver, which has been supported by ongoing referrals between customers and landowners.”
The project will join another high-profile project along Toorak’s rapidly evolving retail strip—Bill McNee’s $600-million St Germain development at 489-505 Toorak Road which was granted approval late last year.
Nearby, Orchard Piper is also preparing plans for a $150-million mixed-use project featuring apartments, offices and shops across an amalgamated corner site at 420-426 Toorak Road and 109 Mathoura Road.
The developer is also pressing ahead with plans for a $120-million office, apartment and townhouses project on a 1200sq m site at 364-370 Albert Street in East Melbourne.
That project will comprise 14 apartments across six levels and two floors for commercial tenancies, all with views of Melbourne’s CBD or Fitzroy Gardens.
