Five-level South Melbourne office building set to spark $7 million plus scrap
Property developers and investors are expected to jockey for position when a five-level office building in South Melbourne goes under the auctioneers hammer later this month.
The 71 Palmerston Crescent property, located 3 kilometres south from the Melbourne CBD, is scheduled to go under the hammer on 27 March and is tipped to fetch more than $7 million.
The property offers a net lettable area of just over 2,710 square metres, 39 car parks, a communal rooftop entertaining and barbecue area.
Colliers International’s Jeremy Gruzewski and Peter Bremner have been appointed to sell the property.
“The building is currently configured into 11 office areas plus a retail premise, all but one of which are currently leased,” Bremner said. “The property has a current net passing income of approximately $621,110 per annum however the potential fully let net income is estimated at $721,502 per annum.”
The property also offers the possibility of future redevelopment potential.
Gruzewski said that at a minimum, the site had the potential to develop "up to four lightweight units for either residential or commercial use (STCA)".
He also added that "given recent residential redevelopment in the area and a recent zoning change to Commercial 1, it is possible a redevelopment of a much higher density and height could be carried out, thus providing a solid exit strategy for a prudent property investor.”
