October 21, Melbourne –
Renzella Group has put a hotel and retail building on St Kilda’s iconic Fitzroy Street retail strip on the market through Teska Carson with expectations of a price in the low to mid $20 million range.
The almost half acre, 63-73 Fitzroy Street property, which enjoys extensive frontage to one of Australia’s most famous boulevards, will be sold with substantial development and rental upside, according to marketing agents, Teska Carson’s Luke Bisset and Michael Ludski.
Mr Bisset said the property represented a landmark opportunity perfectly suited to buyers looking to invest, value-add, part develop or undertake a complete redevelopment of the site.
``This property offers an extremely rare opportunity for investors, owner-occupiers and developers to acquire an asset situated on one of Australia’s best known retail strips and in one of the most iconic destinations.
``Fitzroy Street is home to a plethora of retail and entertainment destinations which attract both locals and international tourists in their thousands week in week out supported by excellent public transport facilities and road access.
``The opportunity to provide a first rate retail and residential property to such a market, whether that be via optimising the current rental potential or a partial or full redevelopment, is one which will have much appeal to a wide range of buyers,’’ Mr Bisset said.
The property currently comprises a three level commercial building including eight ground floor shops with Fitzroy Street frontage on level one, a 40 room, fully refurbished hotel, on levels one and two, and a substantial car park for up to 36 cars at the rear.
Zoned Commercial 1 the 1924 square metre site has an extensive 47 metre frontage. Commercial 1 zoning allows a number of development outcomes, including hotel and short stay accommodation, co-living, residential, office or build-to-rent.
Mr Ludski said the property would be sold with a planning permit for a five level residential project with 54 apartments designed by Cactus Architects. He said there was also the potential to convert the existing improvements into boutique residential accommodation.
The property will also be sold subject to several retail leases currently returning $217,000 per annum with a potential, fully let, retail income of $395,000. There are also 20 hotel rooms occupied on various lease terms currently returning $23,608 monthly with a potential fully let income of $564,192 bringing the total potential annual income to circa $960,000.
Mr Ludski said the property’s key attributes included:
- Prime St Kilda location;
- Fitzroy Street frontage;
- Potential rental income of $960,000;
- Substantial on-site parking;
- Strong redevelopment potential;
- Large, nearly half acre, site; and,
- Planning permit for five level residential project.
The property will be sold by Expressions of Interest closing Wednesday, November 10 at 3pm.