The Chapter Group

The Melbourne property developer, Chapter Group, has carved out a reputation for producing high quality multi-residential and mixed-use buildings across Melbourne&#39;s inner ring for over a decade.

Speaking to Urban, Chapter Group director and founder Dean Lefkos&nbsp;said that the&nbsp;location&nbsp;is one of the&nbsp;top priorities when it comes to planning their next development.

&quot;If you&rsquo;ve bought well, in a good location which is going to be in demand through cycles, in some way shape or form, you can mitigate the risk that that development inherently has,&quot; Lefkos says.

&quot;Capital growth in the more blue-chip inner ring suburbs is also more predictable,&quot; Lefkos suggests, adding that, depending on the real estate cycle, the site which was intended for office could become residential, or vice-versa.

Chapter Group rarely secure sites which are listed for sale on the open market, which is another key part of their philosophy. They prefer to keep their ear to the ground and use their&nbsp;contacts within the industry to quietly buy sites off ma​rket, which Lefkos says unlocks more value.

&quot;If you get a track record in the industry, then they&#39;ll come to us.&nbsp;We receive strong inbound interest due to our track record in the industry&rdquo; Lefkos says.

&quot;Buying off m​a​​rket allows us to be more selective in the site and its location, as well as handle all of the due diligence in a more timely fashion that a listed site.

&quot;We can bring in the architects at the earliest possible stage to talk design, before committing to the site purchase.&quot;

Chapter Group&#39;s&nbsp;most recent strategic acquisition and launch is Fitzroy Fitzroy, a striking mixed-use project&nbsp;in the heart of Fitzroy which is a joint venture with CDL Australia and Crema.

[smartcode_project:default project_id=14394 project_image_fid=183064]

The DKO Architecture-designed building of 63 residences has seen a wave of buyer demand, ranging from a Sydneysider intending to relocate,&nbsp;to a buyer based up in Swanhill, who&nbsp;purchased over a Zoom call.

The majority of enquiry has been from those who know the inner north area and Fitzroy and have been keen on the location and unique design.

Chapter will build above the existing herita​ge facade on the site, incorporating the current structure within the design of the ground level retail, level one commercial&nbsp;space, and the multi-level townhouses on Leicester Street.

[smartcode_project:default project_id=14394 project_image_fid=183069]

Chapter Group&#39;s Senior Development Manager, Oliver Carroll, said keeping the existing building makes for an interesting built form.

&quot;Fitzroy Fitzroy is a really striking design that&nbsp;reflects where the markets heading - and responds closely to the local culture within Fitzroy,&quot; Carroll says.

&quot;It&#39;s in the heartland of old Melbourne - one of Melbourne&#39;s oldest suburbs.

While COVID affected a number of developers, who had to pivot away from the high density stock to a more owner-occupier friendly mix of apartments, Chapter Group didn&#39;t have to do too much to facilitate a point of difference.

&quot;It wasn&#39;t necessarily a case of making the apartments bigger, given we&#39;ve always consciously built apartments for owner-occupiers, but we wanted to be more clever with our designs&quot;, Carroll added.

&quot;One of the biggest changes was to create that working from home space, without changing&nbsp;the configuration of the apartments by losing a bedroom to a home office. It was important to build in a way where residents can step away from the TV space to work.&quot;

Chapter Group recently&nbsp;topped out another one of its developments, Ukiyo, a strikingly modern development of just 10 half and full-floor&nbsp;apartments&nbsp;in Prahran.

[smartcode_project:default project_id=4821 project_image_fid=30081]

Ukiyo&nbsp;was designed by K2LD Architects, merging together the term Ukiyo, which translates to &#39;floating world&#39; in Japanese, with the origins of Prahran, which was named as a compound of two Aboriginal words, &#39;land surrounded by water&#39;.

The design was drawn from the Japanese Ukiyo-e art movement Ukiyo, which creates&nbsp;floating worlds deeply connected to the rhythms and lifestyles of the neighbourhood.

Completion of the 10-apartment development&nbsp;is slated for mid-2022.

[smartcode_project:default project_id=4821 project_image_fid=30082]

Chapter Group&#39;s other project, the luxury Armadale development Monument, has sold steadily throughout COVID, despite the average sold price currently tracking at around $3 million.

&quot;It&#39;s a testament to the product, location, and design&quot;, Lefkos says.

As expected, the interest has been 80 to 90 per cent locals, predominantly downsizers who have walked around the area and know the location, and are wanting to stay within the area they&#39;ve known for years.

[smartcode_project:default project_id=93828 project_image_fid=153800]

Lefkos says the buyers that they often cater for are people who have gone through a number of properties over their lifetime, or may have even built their homes.

&quot;These purchasers won&#39;t always just accept what&#39;s given to them. They want that level of customisation, maybe combine two two-bedroom apartments, or add a den, home office, media room, or even a spa on the balcony.&quot;

One Monument buyer had Chapter Group&nbsp;put a roof terrace on their apartment.

&quot;There&#39;s no cookie-cutter approval to development.&quot; Lefkos says.

Chapter Group's most recent strategic acquisition and launch is Fitzroy Fitzroy, a striking mixed-use project in the heart of Fitzroy, a joint venture with CDL Australia and Crema

Joel Robinson

Why location is a key factor for Chapter Group's apartment developments, as Fitzroy Fitzroy launches

A $95 million apartment building, dubbed &ldquo;Fitzroy Fitzroy&rdquo;, has been proposed by Melbourne developer Chapter Group.

The nine storey Smith Street project is set to have 63 apartments, ranging in price from $570,000 to $3.7 million, plus six townhouses.

It will have 575 square metres of ground floor retail space across three tenancies fronting Smith and Leicester streets, replacing the flagship Kathmandu store in Melbourne.

The mixed-use project at 411-421 Smith Street has been designed by architect, DKO with trapezoid shaped upper levels to accommodate setbacks.

There will also be 679 sqm&nbsp;of office space in the joint venture between Chapter, CDL Australia and Crema Group.

<img alt="" height="768" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/chapter_group_fitzroy_smith_st_2.jpg" width="1200" /> 
The mixed-use project&nbsp;with trapezoid shaped upper levels to accommodate setbacks. Image credit: DKO 
&nbsp; 
CDL is a subsidiary of Singapore-listed City Developments, which has a pipeline of 800 units in Brisbane and Melbourne.

Chapter paid around $20 million for the 1820 sqm site in 2019 which contains a single and double-storey red brick interwar complex originally comprising a workshop and garage.

Its sale marketing advised the two tenants, Kathmandu &amp; Bellboy were on leases expiring March 2022 paying $580,000pa.

Haus Apartments, at 416 Smith Street, directly opposite the site, has been redeveloped with an eight-storey residential tower with set back above a two-storey podium on the street.

Its recent projects have included Ukiyo at 2 Porter St, Prahran and Monument at 608 Orrong Rd, Armadale.

Chapter Group proposes a nine level building at 411-421 Smith Street 

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Fitzroy Fitzroy - 63 apartments proposed for Chapter Group's Fitzroy development

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Melbourne-based Chapter Group has underlined its aggressive expansion plans by announcing the acquisition of four separate development sites.

In light of the recent launch of the developer's super luxury <a href="https://www.urban.com.au/new-apartments/ukiyo-2-porter-street-prahran">Ukiyo Prahran</a> apartment project, Chapter Group's unveiling of the four new opportunities is a vote of confidence in Melbourne's apartment sector. Covering Fitzroy, Toorak, Windsor and Armadale, the new prospects carry a combined end value in excess of $400 million.

Fitzroy's 411-421 Smith Street shapes as the largest of the quartet, and will be developed in unison with Abacus Property Group and Crema Group.

The Smith Street holding is a renovated two-storey brick complex leased to Kathmandu &amp; Bellroy, with leases through to 2022. Expected is a mixed-use residential, commercial and retail development spanning the roughly 1,800 square metre site and holding an end value in the $100 million range.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image68a.jpg" rel="gallery-all" title="411-421 Smith Street. Image: TCI Teneketzis"><img alt="" class="image-article-full-width-580px" height="343" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image68a.jpg?itok=vI_ggWwo" title="411-421 Smith Street. Image: TCI Teneketzis" width="580"></a>

<figcaption>411-421 Smith Street. Image: TCI Teneketzis</figcaption></figure>Also on the agenda is a site on Toorak's Malvern Road. Having already partnered with developer Sin Heng Chan on <a href="https://www.urban.com.au/projects/the-springfield-30-springfield-avenue-toorak-">The Springfield</a> nearby, the duo have nabbed a 1,450 square metre site at 727-729 Malvern Road with intentions of creating 11 high-end apartments within a build valued at $12 million.

Further sites on Windsor's High Street and Armadale which both run in excess of 2,000 square metres in size are also in the developer's pocket.

According Chapter Group's media statement, the site purchases and intended developments are "congruent with Chapter Group’s vision of providing Melburnians with thoughtful homes that deliver design excellence, outstanding quality and unparalleled liveability. Chapter Group Director Dean Lefkos says " Our aim is to build high-quality projects in super prime locations that will provide residents with long-term gain, as opposed to projects and sites that will simply afford us short-term success.

These suburbs are recognised for their unparalleled lifestyle offering and demonstrated strength in capital growth year on year. Pricing expectations have also favoured within our parameters in recent months with vendors recognising the current environment and more prepared to agree to a reasonable deal."

The quartet of sites is also a boon for K2LD Architects; the practice is responsible for all of Chapter Group's projects to date, and have been nominated as architects for the above sites according to the developer's website.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image70_12.jpg" rel="gallery-all" title="Ukiyo Prahran hero perspective. Image: Chapter Group"><img alt="" class="image-article-full-width-580px" height="338" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image70_12.jpg?itok=fxOFyLgD" title="Ukiyo Prahran hero perspective. Image: Chapter Group" width="580"></a>

<figcaption>Ukiyo Prahran hero perspective. Image: Chapter Group</figcaption></figure>In a further sign that Chapter Group is confident in the prospect's of Melbourne's high-end residential sector, Ukiyo Prahran is due to launch its sales campaign.

On the Porter Street, Percy Street and High Street corner, Ukiyo consists of 12 half and full floors apartments, with the top three levels of the ten level building earmarked as penthouses. Ukiyo holds an end value of $40 million and falls into a pocket of Prahran that is seeing a strong level of residential activity, with developers ITUM and SP Setia also pursuing current apartment developments.

Chapter Group's Prahran project also sees retail at ground level plus two full floors dedicated to commercial space.

Ukiyo's living options are split between  2, 3 and 4 bedroom configurations.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image71_8.jpg" rel="gallery-all" title="Ukiyo Prahran interior. Image: Chapter Group"><img alt="" class="image-article-full-width-580px" height="323" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image71_8.jpg?itok=90O-nvFt" title="Ukiyo Prahran interior. Image: Chapter Group" width="580"></a>

<figcaption>Ukiyo Prahran interior. Image: Chapter Group</figcaption></figure>
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Chapter Group launches Ukiyo Prahran, adds four new development sites to its portfolio

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Following on from The Bowery in Richmond and Elland Avenue in Box Hill, comes the latest release from The Chapter Group: Collection XI, a series of eleven luxury townhouses located on a 2,500sqm site in Mowbray Street, Hawthorn East.

The Chapter Group has developed a reputation for their cohesion of expertise across key property development disciplines, from architecture to finance, with their work founded on core principles of design excellence, outstanding quality and liveability.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/the_bowery_elland.jpg" rel="gallery-all" title="The Bowery and Elland Avenue. Images courtesy The Chapter Group."><img alt="" class="image-article-full-width-580px" height="184" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/the_bowery_elland.jpg?itok=gc5niUs6" title="The Bowery and Elland Avenue. Images courtesy The Chapter Group." width="580"></a>

<figcaption>The Bowery and Elland Avenue. Images courtesy The Chapter Group.</figcaption></figure>The Chapter Group was founded by directors Dean Lefkos who worked previously at Goldman Sachs and David Lee Principal of architecture firm K2LD, their relationship began initially in the manner of client and architect on Dean's own private home before a mutual appreciation for quality and design and a desire to implement their collective knowledge and expertise to property development: providing their purchasers with a quality product that reflects value for money.

David Lee says he modeled Collection XI on a tight "European street", inspired by his trips to Assisi in Italy: narrow, tactile street networks full of character and heritage typical of European cities. Off this 'street' sit the entrances to each townhouse with residents also able to catch their own dedicated lift directly from the basement garage to their living room thus creating a secluded enclave of eight private homes behind the three townhouses along the street frontage.

"People want a private lifestyle and we identified a gap in the market for this type of product" says David. The front three townhouses are 170-180sqm in size with the rear eight townhouses 250sqm with quality fixtures, fittings and appliances by the likes of Dada, Roger Sellers, Molteni&amp;C, Hub and Gaggenau, "combining the best elements of modern living".

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/collection_xi_unit07.jpg" rel="gallery-all" title="Interior of Collection XI townhouse. Image courtesy The Chapter Group."><img alt="" class="image-article-full-width-580px" height="306" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/collection_xi_unit07.jpg?itok=E2LK3nbZ" title="Interior of Collection XI townhouse. Image courtesy The Chapter Group." width="580"></a>

<figcaption>Interior of Collection XI townhouse. Image courtesy The Chapter Group.</figcaption></figure>The project was lodged just before the changes in residential zones came into effect meaning that The Chapter Group were to have tried obtain a planning permit after their implementation they would now be limited to a maximum of four dwellings under the current requirements. As such Dean and David believe that it's highly unlikely that another opportunity to develop or buy such houses would present itself.

Working with Jack Merlo who was engaged for the landscape design aspect of the project in addition to the arbour, The Chapter Group have conceived a pedestrianised network the result of moving cars to the basement garage and folding the ground plain to provide a ground level that is sole domain of the pedestrian/resident, creating a journey and experience of walking through a network of streets.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/collection_x1_landscape.jpg" rel="gallery-all" title="European-styled street network. Image courtesy The Chapter Group."><img alt="" class="image-article-full-width-580px" height="725" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/collection_x1_landscape.jpg?itok=MMEiPY4N" title="European-styled street network. Image courtesy The Chapter Group." width="580"></a>

<figcaption>European-styled street network. Image courtesy The Chapter Group.</figcaption></figure>A point of contention according to David and Dean was the pitched gabled roofs of the three front townhouses and what council considered to be a "chalet aesthetic" out of character with the surrounding houses within the neighbourhood. It could be argued that employing gabled roofs results in a diverse streetscape of varied roof forms distinguishing the development as a high quality, well articulated architectural intervention within the street. Additionally the roof forms can also be understood as an inflection and juxtaposition to the butterfly roofs of the rear eight townhouses creating a dialogue between the two sets of dwellings.

Together the contrasting roofs act to break down the massing and forms of the dwellings a very deliberate strategy. The inclusion of butterfly roofs is somewhat of a rarity in Australian developments with a strong disposition away from them due to their tendency to leak. This has been addressed within Collection XI by employing a far more robust more closely aligned to the thick concrete butterfly roofs that David Lee worked on in Singapore.

In terms of materiality the townhouses employ a combination of off-form ribbed profile concrete walls and smooth concrete surfaces complimented by warm timbers employed both in vertical and horizontal applications creating a contrasting composition of elements and a departure away from the typical townhouse typology associated with the suburbs.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/collection_x1_hero_rear.jpg" rel="gallery-all" title="Collection XI rear dwellings, thirteen in total. Image courtesy The Chapter Group."><img alt="" class="image-article-full-width-580px" height="892" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/collection_x1_hero_rear.jpg?itok=e66ee5WL" title="Collection XI rear dwellings, thirteen in total. Image courtesy The Chapter Group." width="580"></a>

<figcaption>Collection XI rear dwellings, thirteen in total. Image courtesy The Chapter Group.</figcaption></figure>
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