Big loss taken on South Yarra warehouse

An inner-city warehouse at South Yarra in Melbourne’s inner east, which had a $3.3 million asking price after its recent auction, has been sold for $2.75 million.

Located directly opposite the Como Centre and Vogue Plaza, the 56 River Street property, comprises a single level, 235 square metre brick building on a 324 square metre site zoned Activity Centre 1.

The 56 River St property is a 250 square metre building on 371 square metres, with two frontages and on-site parking.

It has street and laneway access as well as on-site parking.

According to marketing agents, Teska Carson’s Luke Bisset and Matthew Feld, the property offered an owner-occupier opportunity and/or office conversion or development opportunity.

"The purpose of Activity Centre zoning is to encourage a mixture of uses and the intensive development of the activity centre as a focus for business, shopping, working, housing, leisure, transport and community facilities, and to deliver a diversity of housing at higher densities to make optimum use of the facilities and services," the agents said during its marketing.

The property will be sold subject to a short term lease at $50,000 per annum net. 

The warehouse last sold for $3.75 million through Teska Carson in 2016 to an intending owner-occupier reflecting $10,135 a square metre.

At the time the premises had a short-term tenant returning $44,950 a year.

It had sold at $82,000 in 1977.

It has been offered by the Williams family from South Yarra.

The family is headed by Lyn Williams, who has managed the estate of the artist Fred Williams, and is executive director of Maraquita Pty Ltd, the family company.