Melbourne's former Duke of York Hotel on the block with $9.5 million price tag
Melbourne’s former Duke of York Hotel at Prahran, renamed The Smith after renovation by the owners including Lucy Liu, has been listed for auction with expectations of a $9.5 million plus price tag.
The Smith at 213 to 219 High Street recently reopened following a multi-million dollar renovation, expanding into the building next door and doubling the size of the venue to 1,045 sqm.
The upgrade includes a retractable glass roof that creates a closed piazza style atrium, a 120-seat dining and bar area and a first floor function room.
The property current earns a net annual rental of $520,000 and will be sold subject to a new 10-year lease with two further ten-year options.
The asset is being marketed by Teska Carson’s Michael Taylor and Michael Ludski.
The auction is scheduled for October 20.
In occupation for the past seven years, the lessees are celebrated Melbourne restaurateurs Michael Lambie and Scott Borg of Lucy Liu, Taxi Dining Room, Lamaro’s and Circa fame, and business partner and current The Smith executive chef, Brad Simpson.
The business operates a general 3 am liquor licence for 307 patrons.
Listing agent Taylor said the corner (Clifton Street) location would attract both investors and developers due to its commercial 1 zoning and with potential for a high rise residential development.
“The Smith ticks all the boxes for a solid investment with a secure lease to very successful tenants in an unrivalled location, but it also offers an exceptional landbank opportunity should the buyer wish to pursue future development options down the track,” said Taylor.
“Prahran has been and will continue to be a strong property performer as Melbourne’s population grows over the next 20 years and more, and the demand for apartments grows with it.’’
According to Ludski, it is the entertainment element that has been a key driver of property values in Prahran in recent times.
“Put simply, ‘The Smith Prahran’ is an anchor hospitality destination situated within the epicentre of Melbourne’s hottest entertainment precinct,” he added.