St Kilda Rd office building up for grabs
The building at 450 St Kilda Road is between Toorak and Commercial roads, an area that in the past has attracted interest from residential developers.
Most of the squat concrete and glass structure was tenanted until 2016, said Colliers International's Nick Rathgeber, who is marketing the building with colleagues Tess Elliott and Brett Griffith.
"It's anticipated someone will knock it over in the near future and do a residential building," he said. The 2323-square-metre site fronts St Kilda Road and Queens Lane.
Mr Rathgeber said residential development sites in St Kilda Road were rare. "Active developers want to be as close to the city and botanic gardens as possible," he said. "The property offers the luxury of a valuable holding income throughout the design and approval process, with vacant possession achievable by 2016."
The low-profile Carter Group brought 450 St Kilda Road in 2002 for $8.2 million, title records show. The group also owns 448 St Kilda Road next door and is in partnership to develop the soon-to-be-completed Albert Tower in South Melbourne.
Several years ago, the group was behind a deal to sell a prime beachfront development site in Queensland, the Seahaven Resort in Noosa, to British-based investment group Blue Sky Capital for $120 million. The sale negotiated in 2008 fell through after the global financial crisis struck.
Lemon Baxter director Paul O'Sullivan said recent sales in St Kilda Road had primarily been investment-grade stock. In April, 71 Queens Road with a net lettable area of 8444 sq m went for $25,575,000. Another at 10 Queens Road with an NLA of 9005 sq m sold in the same month for $21,350,000.
Expressions of interest for 450 St Kilda Road close on July 25, Mr Rathgeber said.
sjohanson@fairfaxmedia.com.au
St Kilda Road area sales in 2013
71 Queens Road
Net lettable area
8444 sq m
April
$25,575,000
10 Queens Road
Net lettable area 9005 sq m
April
$21,350,000
541 St Kilda Road
Net lettable area 8229 sq m
May
$28,000,000
615 St Kilda Road
Net lettable area 8532 sq m
March
$29,100,000
SOURCE: COLLIERS AUSTRALIA
Frequently Asked Questions about this Article…
450 St Kilda Road is a five-level concrete-and-glass office building in Melbourne that the Carter Group has put on the market. The property is being marketed with residential development potential, and the seller is hoping for about $20 million.
The building sits on St Kilda Road between Toorak and Commercial roads, fronting St Kilda Road and Queens Lane. Location is attractive because St Kilda Road sites close to the city and the botanic gardens are rare, which makes this a potentially valuable residential development site for investors and developers.
The site is about 2,323 square metres and comprises a squat concrete-and-glass five-level structure. Its size and frontage to St Kilda Road and Queens Lane are highlighted as features that appeal to both investors and developers.
The Carter Group is marketing 450 St Kilda Road with hopes of around $20 million. Colliers International agents Nick Rathgeber, Tess Elliott and Brett Griffith are running the campaign, with expressions of interest for the property closing on July 25 (as noted in the article).
Yes — Colliers' marketing agents say the property has strong residential development potential and they anticipate a buyer may demolish or redevelop the site for residential use. The article also notes that residential development sites on St Kilda Road are rare, increasing its appeal to developers.
Most of the building was tenanted until 2016, and the marketing notes that vacant possession should be achievable by 2016, allowing a buyer to hold income during the design and approval process and then take possession for redevelopment.
The seller is the Melbourne-based Carter Group, which bought 450 St Kilda Road in 2002 for $8.2 million according to title records. The group also owns the neighbouring 448 St Kilda Road and is involved in other local developments, including a partnership on the Albert Tower in South Melbourne.
The article cites nearby sales to give market context, including 71 Queens Road (NLA 8,444 sq m) for $25,575,000 in April; 10 Queens Road (NLA 9,005 sq m) for $21,350,000 in April; 541 St Kilda Road (NLA 8,229 sq m) for $28,000,000 in May; and 615 St Kilda Road (NLA 8,532 sq m) for $29,100,000 in March, which help frame comparable values for investors considering 450 St Kilda Road.
Call 1300 880 160
Start a chat
Schedule a call
