Pace Development Group has offloaded its under-construction office block in Collingwood for $31 million.
Located on the corner of Langridge and Wellington Streets, the 52 per cent leased building is slated for completion by early 2020.
A private purchaser, and new entrant to the Australian commercial property scene, snapped up the 11-storey building on Melbourne’s city fringe.
The SJB-designed tower sits on a 510sq m site, with CBRE’s Scott Orchard, Josh Rutman, Lewis Tong and Joseph Du Rieu managing its sale.
“Despite some concerns about the amount of new office supply in Melbourne’s city fringe, the appetite for office investments in Melbourne is at fever pitch,” Rutman said.
“This is having a major impact on pricing as very few quality assets have come to market compared to this time last year.”
Pace Development Group’s managing director Shane Wilkinson said that the levels of leasing enquiry and interest to purchase the property during the construction phase had been “a true testament to the strength of the precinct”, along with Collingwood's growth as it “matures into a bona fide office location”.
Orchard said the businessman buyer was wanting to acquire an asset that didn’t need excessive time spent on maintenance.
“While also offering depreciation benefits, and close to where he grew up in the heart of Collingwood,” Orchard said.
Last month Costa Fox's 1-11 Gordon Street office project in nearby Cremorne changed hands while still under completion.
Investment Firm Bayley Stuart Capital snapped up the project for $50 million.