Pace Development Group is the latest Melbourne developer to diversify into the commercial sector, launching its first straight commercial venture in Melbourne’s Collingwood to market.
The project was approved in April following a decision by the Victorian Civil and Administrative Decision to set aside Yarra City Council’s initial rejection.
The privately-owned developer is confident in Melbourne’s strong office market, announcing it will soon begin construction on the project, named “Brick”, with no tenant pre-commitments.
The SJB-designed project at 51 Langridge Street in Collingwood will offer 3,000sq m of net lettable area over 10-storeys, with smaller floor plates of 250sq m to 300 square metres.
Pace planning manager Michael Holah said that the developer is expanding its portfolio to capitalise on the undersupply of affordable boutique office buildings in Melbourne’s inner-north.
“We see this [project] striking a real chord with businesses wanting a contemporary upgrade, those priced out of suburbs such as Richmond and Cremorne, as well as those currently located in a co-working environment that have grown enough to warrant their own office space,” Holah said.
“Collingwood is an area we are very familiar with and one we are passionate about investing in, which is why we have extended our activity here to include spaces for both work and play.”
The Melbourne-based developer acquired the Collingwood site for $1.86 million in 2014. The end value of the project is $25 million.
Other Melbourne developers that have recently made the move into commercial projects include BPM’s Jonathan Hallinan with his $12 million “Studio Light” project in Collingwood and Tim Gurner, who recently submitted plans for a $120 million mid-rise office building in North Fitzroy.
The development is located adjacent to its “Pace of Collingwood” project, which is currently under construction.
The project is being jointly marketed by Cushman Wakefield and Lemon Baxter.