Boutique Developer Buys The Perfect Fitzroy Site

Posted on 16th August 2022

One of the best and last remaining development sites in one of Australia’s most sought-after lifestyle suburbs has sold for more than $9.3 million after attracting huge interest.

Fitzroys’ Chris James and Chris Kombi sold 450 Gore Street, at the corner of Leicester Street in Fitzroy, on behalf of a private family.

The campaign generated more than 130 enquiries with multiple qualified underbidders competing for the property. It sold to prominent high-end boutique developer Neometro for $9,305,500, at a high land rate of $10,350 per sqm.

The significant triple-fronted 900sqm site is on beautiful tree-lined Gore Street and behind popular Smith Street, named the Coolest Street in the World by Time Out. Fitzroy itself, meanwhile, was recently ranked as Melbourne’s most liveable suburb by CoreLogic, which took into consideration parks, health, shopping, public transport, schools and walkability across every one of the city’s suburbs.

“Developers looked past inflationary pressures and growing construction costs, recognising this was an unrivalled opportunity to deliver a project in the heart of one of Australia’s most liveable locations,” James said.

“We’ve seen prudent, highly-qualified developers compete strongly for the few recent offerings in the area and, as expected, this was no different.

“Inner-city locations with excellent lifestyle qualities are particularly popular with Melburnians as flexible working arrangements become commonplace. The market’s seen overwhelming evidence for demand in the immediate area across multiple projects.”

The site has favourable Mixed Use zoning and is within the Fitzroy East and Johnston Street North planning precinct, which promotes significant density and development.

Kombi said the site is within walking distance to every possible amenity including parks, public transport, renowned bars and eateries, and Fitzroy swimming pool. As well as Smith Street, the site is close to the Brunswick Street and Johnston Street lifestyle precincts, as well as the iconic Edinburgh Gardens, and just 1.5 kilometres from the Melbourne CBD.

Current improvements include a 780sqm single-storey warehouse and on-site car parking, leased on a monthly agreement. James said the property attracted interest from buyers ready to immediately go about working on development plans, as well as landbankers who were keen to generate a strong income from a quality tenant while assessing their options for the site.

Neometro’s project will be the latest development in Fitzroy, which attracts local, interstate and international guests to the precinct given its world-class offering of retailers, restaurant, cafes and bars. The suburb is soon to be home to leading boutique hotel group The Standard nearby on Rose Street, where a 126-room hotel is set to be opened in 2023.

Piccolo has recently been granted a permit for their $120 million apartment project at 385 Gore Street and sold out its 71-75 Argyle Street project, while the Victorian Government is redeveloping the Fitzroy Gasworks site into a new residential, sports and community precinct.

Close by is the rapidly developing Collingwood office market with multiple projects recently completed and underway, including the $111 million Aesop headquarters by Impact Investment Group, global investment group Hines’ $200 million timber tower, and projects at 51 Langridge Street and 71 Gipps Street.

The 450 Gore Street transaction was managed by Phillip Almeida of Performance Property.