A prized land-rich landholding in Fitzroy North has sold for $5.6 million, after an array of buyers competed for the rare opportunity to occupy or redevelop in Melbourne’s highly sought-after inner-north.
Fitzroys’ Chris Kombi and Ervin Niyaz sold 726-732 Nicholson Street via Expressions of Interest on behalf of a private investor, with the final sale price well above expectations.
A land banking developer was the purchaser of the 669sqm site that currently comprises four shops on three titles of a combined 463sqm. It has eight rear on-site car parks accessible via Scotchmer Street, and has an expansive frontage to Nicholson Street of 21.95 metres. It was offered with short-term holding income.
Zoned Commercial 1, the site offers higher-density development potential with multi-level towers nearby ranging from four to six levels.
Kombi said interest was received from developers, value-add players, land bankers and owner-occupiers.
“It’s incredibly rare to find a ripe development opportunity of this size on a main road position in Melbourne’s inner-north. We’ve again seen developers and land bankers look past inflationary pressures and growing construction costs to take up the chance to deliver a project in one of Melbourne’s most sought-after locations,” he said.
“The market recognised there has been ongoing, overwhelming demand in the immediate area across multiple projects. As expected, we had a number highly-qualified developers compete strongly for this site.”
Niyaz said accessibility and quality lifestyle amenity remain all-important, and inner-city locations are particularly popular with Melburnians as flexible working arrangements become commonplace.
“Land bankers were confident of the long-term prospects of the site given the ongoing demand for numerous projects in the area, in addition to trends towards flexible working arrangements.”
The site is surrounded by multiple cafés and eateries, and is just one kilometre from the Lygon Street hospitality precinct and 450 metres to Edinburgh Garden, while the Route 96 tram stop is at its door step with bus services along nearby Scotchmer and Pigdon Streets.
He said interest also came from owner-occupiers looking to occupy part or all of the existing building, and bring a new offering to a vibrant, fast-growing inner-city location, while value add players saw the chance to reposition the building.
“The area surrounding Nicholson Street has seen a surge in the development of residential apartments in recent years along Nicholson Street, St Georges Road and Queens Parade, and the population boom in the immediate area will benefit all businesses along Nicholson Street. Melbourne’s shopping strips have benefited from more people buying coffee and lunch and spending time locally.”