Melbourne based developer, Piccolo Developments, has swooped on a city fringe development opportunity paying $7.8 million for not-for-profit Australian Volunteers International’s quarter acre site in Fitzroy in a deal brokered by Savills Australia.
According to selling agents, Savills’ Nick Peden, Clinton Baxter and James Lockwood the property sold well above initial price expectations, of circa $6 million plus, at the very strong rate of $7635 a square metre of land.
The 71-75 Argyle Street, property comprises a quality office building and associated car parking on a 1059 square metre corner site with a combined 65 metres frontage to Argyle and Fitzroy streets.
Mr Peden said the marketing campaign had attracted more than 130 individual enquiries from local and off-shore developers and investors looking to take advantage of the potential of a property located in a very popular area for apartment developments.
"We had a huge amount of interest, which we were expecting given the location as arguably one of the best precincts for multi-unit development in Melbourne, and that interest was reflected in what was one of the best land rates of any recent comparable sale,’’ Mr Peden said.
He said Fitzroy, and particularly the Brunswick Street precinct, had been one of the most popular dining, entertainment and fashion precincts in inner Melbourne for several decades.
"The property is just 50 metres from Brunswick Street – one of Melbourne’s best known retail/entertainment strips – and that has been a key driver for successful residential developments in the vicinity,’’ Mr Peden said.
Mr Lockwood said the property also offered close proximity to the CBD - just one kilometre away - and access to numerous public transport options, while the site provided excellent development access and frontage to two streets.
He said Fitzroy had seen a surge in applications for new apartment development in recent years many of which comprised low to medium rise boutique developments designed to fit in with the suburbs strong neighbourhood character.