Local developer pays $7.9 million for St Kilda residential apartment site

The local developer intends to utilise the site’s existing permit for a premium six-storey mixed-use development

Local developer pays $7.9 million for St Kilda residential apartment site
Local developer pays $7.9 million for St Kilda residential apartment site

A St Kilda island site spanning 1,370sqm has been bought by a local apartment developer for $7.9 million.

As the suburb continues along the regeneration path, Fitzroys’ Mark Talbot and Shawn Luo, together with Danny Clark and Michael Gross of Gross Waddell ICR, sold the property at 344-360 St Kilda Road via a June expressions of interest campaign.

It was listed by the vendor who had accumulated the site at the corner of Pakington Street, opposite the Queens' Arms Hotel apartment complex.

The initial 756 sqm acquisition was the corner block in 2012 at $2.7 million. There was then a $3.5 million acquisition in 2016.

The site comes with a permit for a premium six-storey mixed-use development, with 44 apartments and a net saleable area of 4,743sqm.

The local developer buyer was attracted to the project which has residences designed for the growing downsizer and owner occupier segments of the market. 

The site is on one of Melbourne’s main inner-city arterials serviced by multiple tram routes at its doorstep, walking and cycling trails and Balaclava train station.

The site currently comprises a single-level showroom and office tenanted by Tradelink and SMR Advertising.

Cordell Connect indicated 344, 350 and 352-360 St Kilda Road had an estimated value of $15 million on construction.

It traded on a sharp 2.4% yield. 

“The market recognised this site as the largest development opportunity in the suburb for some time, with nearly 200 enquiries received from enthusiastic parties,” Talbot said.

"There’s a host of residential, retail and commercial projects that promise to bring a new vibrancy to a famous Melbourne location.”

“St Kilda’s lifestyle attributes makes it uniquely attractive to a number of demographics, and its catchment comprises established, affluent and transient cohorts. 

Last month Colliers sold a development site, zoned commercial 1 zoned, at 102-112 St Kilda Road at an undisclosed price.

The offering was six adjoining properties totalling 827 sqm.

It had been listed unsuccessfully in 2018 with $6 million hopes for all six, having been acquired by the vendors over time, with CoreLogic records showing the last separate sale had been No. 102 for $900,000 in 2012.

Gross Waddell ICR currently has another high-profile St Kilda Road corner freehold for sale with a recently approved permit for a mixed use development.
 
It is at 46-52 St Kilda Road.

The developer had sought an eight-storey building comprising ground level retail, 26 dwellings, 44 car parking spaces, 33 car stacker parking spaces and 31 on site and two on-street bicycle spaces in 2020, and then secured permission for an eight storey mixed use development consisting of 2,902 sqm* of NSA

The plans offer oversized apartments with a blended average of 116 sqm* of NSA per apartment.


 

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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