The evolution of a bustling new Melbourne CBD precinct around A’Beckett Street is expected to result in a strong buyer contest for a former brick workshop-turned-modern commercial building.
Colliers International’s Daniel Wolman and Oliver Hay have been appointed to sell a three-level, 352sqm office and retail building at 51-53 A’Beckett Street on behalf of two local private investors. “The building was substantially renovated in 2007 and currently provides for high quality boutique office accommodation on the upper levels and retail on the ground floor,” Mr Wolman said. “The property also includes a beautiful, north-facing rooftop terrace of approximately 27 sqm.”
The property sits on a 147sqm site and comprises approximately 95sqm of retail space on the ground floor, home to a restaurant comprising of a main dining area and bar with a full commercial kitchen to the rear. Upstairs is 294sqm of boutique office space across two levels. There is a net passing income of approximately $221,200 per annum plus GST and outgoings.
“This section of Melbourne’s CBD is currently seeing, and has over recent years, seen incredible redevelopment and considerable uplift which has been driven by high rise residential living and low office vacancy levels. In response to Melbourne’s rapidly growing population, substantial high-rise developments are beginning to take shape within the vicinity of this property. As a result, A’Beckett Street is expected to transform into a new centre of the CBD retail core.”
Located at the heart of the CBD grid, between Elizabeth and Swanston Streets, the property sits amongst some Melbourne’s best known attractions and is home to various commercial and tourist destinations including Queen Victoria Market, Melbourne Central, QV Shopping Centre, the revamped Myer complex and Emporium, The University of Melbourne, RMIT University, State Library and Bourke Street Mall.
“The high influx of students and staff to and from such world renowned establishments results in a bustling, high energy precinct with flow on affects which will greatly benefit the property including high pedestrian foot traffic, excellent connectivity to train and tram services and access to an abundance of shops, bars and restaurants which are vital for the sustainability of the CBD retail core,” Mr Hay said.
“The opportunity to purchase a freestanding asset within the epicenter of Melbourne’s retail and education precinct is rare and the ability to capitalize on its future growth should not be missed. We are experiencing strong interest in this precinct and expect a strong turnout on auction for our latest exceptional offering on A’Beckett Street.”
The listing follows an outstanding sales result for a classical, two-level building nearby which changed hands for the first time in 55 years after outstanding buyer interest resulted in a sale before auction. Mr Wolman and Mr Hay were scheduled to take 71-73 A’Beckett Street to auction on behalf of the Victorian Spititualist Union.
“Excessive interest saw more than 150 enquiries and several offers received throughout the campaign,” Mr Wolman said. “One of these offers, which was received less than 24 hours before the auction, was simply too good to refuse. The eventual sale price of $3.4 million was well above the reserve. In fact, it was 21% above the asking price.”