Apartment developer buys South Yarra landmark, Hotel Claremont
Michael Renzella’s long held 1880s boom time Hotel Claremont building in South Yarra has been sold for around $22m to Andy Zhang's V-Leader group.
It comes with a permit for a $50 million, 12-level, luxury mixed use project.
Emmett's marketed the 189 Toorak Road Hotel Claremont property with $20m plus price expectations. The sale comes soon after the next corner closer to South Yarra station, a row of four Tudor style shops, has been sold with development potential for $13.15 million.Covering 613 sqm, the 169-175 Toorak Rd property was marketed for its potential for a 10-plus level tower.
The neighbourhood has attracted attention from property developer Oreana, which has reportedly spent $48 million buying the neighbours for a hotel and wellness centre.
The three-storey brick Italianate 81-room Hotel Claremont building with two shops was built in 1886 as the South Yarra Coffee Palace, one of several temperance alcohol-free destinations.
Selling agents Michael Ludski and Luke Bisset took more than 200 enquiries including six formal expressions of interest.
They advised the buyer was likely to undergo a redevelopment along the lines of the approved project.
The permit for the 906 square metre site allows for 57 apartment development of a mixed use building comprising four shops totalling 712 square metres, 1195 square metres of office space, and 30 car parking spaces.
Located on the corner of Claremont Street, the property has an approved DA for construction of a mixed use building with 54 units, 4 retail shops and 5 offices plus basement car parking for 22 vehicles, 53 bicycle parks and 54 storage units.
The hotel last traded at $2,250,000 at auction in 1994.
There are two retail tenancies, Chemist Warehouse and Sirocco.
The tenants are returning a combined annual income of $181,500, with leases having termination clauses.
V-Leader has undertaken more than $440 million of property development including 6 Sydney St, Prahran, 16 apartments in a six-storey building designed by Wood Marsh Architecture.
Construction is due for completion in late 2021 by VCON Construction.
There is a $3.62 million price on the last ground floor, three bedroom, three bathroom apartment with a 187 square metre terrace/courtyard, through V-Leader agent Sam Fisher.