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A Sydney Developer has purchased two neighbouring buildings in Cremorne for $23 million.
The two commercial properties, located on Balmain Street in the sought-after suburb of Cremorne, offer a combined 1,750 square metres.
The site has approval for an office tower up to eight levels – subject to relevant planning proposals.
The site at 116-124 Balmain Street was acquired by the Pizmony family for $4.9 million in 2006. The neighbouring 122-124 Balmain Street was bought by the Lawrence family’s Alexander Corporation for $1.5 million in 2003.
Related reading: Fridcorp Secures Approval for 90-Apartments in North Melbourne
CBRE’s David Minty noted land prices had skyrocketed in Cremorne, from as low as $3,000sq m in 2013 to $13,000sq m.
“The area has become particularly sought after by businesses in the creative industries, providing ease of access to the city, public transport and the freeway.
“Rents are now regularly exceeding $500sq m and, in turn, vacancy rates are at historical low levels of just one per cent.”
“Developers such as Alfasi, Zig Inge, ICON, Caydon and Salta have been actively targeting the precinct as a result of strong tenant demand, with the area already home to Uber, MYOB, Walt Disney, REA Group, Tesla and Carsales.com.au,” Minty said.
Related reading: Icon Wins Approval for Office Project in Cremorne ‘Tech Hub’
Cremorne has become a hotspot for developers aiming to replace outdated industrial buildings with commercial offerings.
Alfasi Property’s 11 story mixed-use office building at 510 Church Street, Seek’s new $163 million headquarters at 60 Cremorne Street and Caydon’s $1 billion Malt District redevelopment are a few examples of Cremorne’s fast-paced urban regeneration.
Local developer CostaFox recently snapped up a development site in Cremorne for $12 million with plans to develop a 5000sq m office project.
“Growth and demand in this market have been phenomenal,” Minty said.
“Suburbs such as Cremorne, Collingwood, South Yarra and South Melbourne have been the principal focus points, with developers aspiring to provide modern office space that caters to evolving tenant needs.”
