St Kilda Rd six-pack a developer’s potential dream
A colourful six-pack of properties along St Kilda Rd has hit the market, leaving the site’s future unknown.
The St Kilda package from No. 102-112 is leased to commercial tenants including a baker, plant shop and office space, but has potential for much more.
Morley’s director Matthew Morley says savvy investors and developers will eye off the six properties, on separate titles, and owner-occupiers might be interested in purchasing them individually.
Commercial Insights: Subscribe to receive the latest news and updates
The St Kilda Rd properties have potential to be developed into apartments, or even a hotel.
“The owner will offer the whole lot to start off with but will consider selling them individually as well,” Mr Morley says.
“We are pitching about $6 million for all six.”
The properties, totalling 805sq m, have been acquired by the vendors over time, with CoreLogic records showing the most recent purchased was No. 102 for $900,000 in 2012.
Their recorded ownership dates back to the purchase of No. 104 in 1983 for $60,000.
The properties return more than $221,000 in rent each year.
There were no sale records for the other four buildings.
Morley says the more than $221,000 in annual rental return could be increased by renovating the properties — or the sites could be completely redeveloped.
“We have a concept idea that architects have prepared for the owners with four or five storeys of residential apartments with showroom retail downstairs,” he says.
“We may find a boutique hotel operator may look at developing it, there’s definitely an opportunity there.
Developers, investors and owner-occupiers are expected to show interest in the St Kilda Rd sites.
“It’s got a big laneway at the back which would make it a bit easier to renovate, update or develop.”
Morley says it is rare for six sites to be set for sale as one at the prominent location.
“Our main drive is to sell it as one whole lot,” he says.
“It’s a great opportunity and they haven’t been offered in a long time.”
This article from Leader Newspapers originally appeared as “St Kilda Rd six-pack set for sale with $6 million price tag”.
