THE former Clipsal warehouse site in Fitzroy North, earmarked for a commercial tower by prominent developer Tim Gurner, has been listed for sale with expectations of more than $18 million.
Gurner entered into an agreement with the owners of 81-89 Queens Pde two years ago to develop and lease a $90 million office and retail building with a net lettable area of more than 14,000 sqm.
A Melbourne family picked up the 3,200 sqm corner site for $15.5 million in 2015. It is now being offered with approval for an eight level project designed by Cox Architecture.
Savills Clinton Baxter, Jesse Radisich and Benson Zhou have been appointed to manage the expressions of interest campaign.
The agents described the site as “one of the strongest commercial development opportunities in Melbourne’s coveted and competitive inner city suburbs this year”, with triple street frontages to Alexandra Pde, Queens Pde and George St.
“The upside potential of this site is profound, and we have already commenced fielding interest from major local and offshore developers keen to know more about this project,” Baxter said.
Baxter said the property is also surrounded by high quality lifestyle and retail amenity, including Smith St retail and Edinburgh Gardens, and is only two kilometres from Melbourne’s CBD, and 1.5 kilometres from Melbourne University.
The site is close to the 3.9 hectare Gasworks project at 433 Smith St and fronting Alexandra Pde, positioned by Development Victoria as a mixed-use village with a range of housing types, community facilities, schooling, and open space.
“81-89 Queens Parade is arriving at a time and place that meets the strongest commercial office markets in decades,” Baxter said.
Radisich said “Fitzroy and Cremorne are the two most highly sought locations by both developers and occupants alike, and with this property providing a ready-to-start proposition, demand is likely to be extremely high”.
Skyrocketing commercial development levels in the northern fringe suburbs have mostly taken place in Collingwood, but are yet to make their way into Fitzroy.
Gurner has typically made headlines in the area for his plethora of residential projects. The $280 million Victoria and Vine project that had initial plans for a 13-storey project by Koichi Takada Architects rejected after being condemned publicly as out of character with the traditionally gritty neighbourhood and dubbed “Las Vegas”. Cox Architecture drew up the current design.
Victoria and Vine recently achieved the two largest residential sale price tags in Collingwood. Penthouses in the nine-building project have sold for $7.5 million and $6.75 million.
In Collingwood, Jowett Motor Group is shopping around 5,400 sqm of Commercial 1-zoned land, comprising the adjoining Honda, Nissan and Hyundai dealerships on busy Hoddle St, with expectations north of $40 million.