A never-before-offered site in the heart of famous Chapel Street is going to auction next month.
Fitzroys’ Lewis Waddell and David Bourke, in conjunction with Peter Lane of Lane Commercial, are marketing 259-261 Chapel Street, Prahran on behalf of the historic Prahran Mechanics Institute, now known as the PMI Victorian History Library Inc.
The on-site auction is scheduled for 1pm on Thursday, 13 August.
Interest is anticipated circa $3 million.
On 366sqm with Activity Centre zoning, the property boasts a 15m street frontage to the major shopping strip, and is fully leased to three tenants in underwear, swimwear and sportswear retailer DailyJocks, Connection Perfumes + Gifts, and Bennett’s boxing gym.
“We’re expecting strong interest from investors, developers and value-add buyers,” Waddell said.
“It’s a never-before-offered chance for a buyer to make their mark on Australia’s most famous high street.”
“This section of Chapel Street is performing well and is home to a number of high-quality businesses that drive pedestrian traffic throughout the day and into the night, including the new JB Hi-Fi, Dan Murphy’s, Rebel Sport, Coles, Lululemon, and more.”
“There are fashion labels, service retailers and hospitality operators wanting to be near these types of tenants and are anticipating upside to the strip.”
“Chapel Street has a huge future ahead - it’s undergoing a generational period of revitalisation. We’re seeing an incredible number of precinct-shaping developments take place, which will bring thousands of residents and workers to the immediacy of the strip, driving trade and activity at all hours.”
“Developers and value-add buyers will take note of the flexible, attractive Activity Centre zoning and the opportunity to add something really special to Chapel Street.”
Bourke noted that projects on and around Chapel Street are headlined by Gurner and Qualitas’ $5 billion Jam Factory redevelopment, which will deliver more than 800 apartments, luxury hotels, and 20,000sqm of retail and commercial space across five towers, with the popular cinema to be retained.
Bill McNee’s Vicland recently acquired 402-416 Chapel Street for $65 million and has preliminary plans for a 12-storey retail and commercial building, while closer to the 259-261 Chapel Street property Mario Lo Giudice’s Banco Group will soon open the Cecil Place Precinct at the former Union Bank of Australia building, bringing a new retail, hospitality and office offering.
Lane added that the Victorian Government’s newly designated Activity Centres include Chapel Street and the immediate surrounds, further encouraging high-density development in the immediate surrounds.
The vendor of 259-261 Chapel Street was established as the Prahran Mechanics’ Institute in 1854. It is a community-owned and run library, specialising in the history of Victoria and which has become a central resource for research into the state’s history.
The library, based in St Edmonds Road, Prahran, has over 70,000 items for loan, many of which are exclusive. It also provides a professional information service for members and organises educational activities including lectures, seminars and competitions to encourage and facilitate the study of history.