The Golden Mile’s Only Auction of 2019. 186-190 Lygon Street, Carlton, a former hotel and now commercial office building has sold for $6.8m, the first and only sale on the iconic strip for 2019. The imposing corner freehold was offered as a blank canvass, appealing to occupiers, investors and developers.
MMJ Real Estate’s Joel Wald together with Colliers International’s Daniel Wolman, Oliver Hay and Dave Walker were appointed to auction the 659sqm double-storey corner freehold, saying they were expecting interest around the $6 million mark.
“A land rate of over $16,000/m2 is exceptionally strong for this precinct and a recent record if you consider the undevelopable rear laneway which is on title”. said Mr Wolman.
“This property presented a rare opportunity to secure a substantial corner freehold with enormous scope for repositioning. With high exposure to Lygon street, Pelham Street and a rear laneway, it’s no surprise we received interest from hospitality operators, office developers and occupiers”.
“The new owner has opportunities for lease-renewal, refurbishment of the existing building, construction of additional levels, rooftop activation and a diversification towards food and beverage, retail or however else they see fit.”
Mr Wald said "the sale further confirmed continuing interest in well located properties primed for re-positioning within retail strips.” He further commented “the low interest rate environment was providing stimulus in the market with retail assets achieving record low yields”.
Mr Walker said the “prime location, directly opposite the leafy Argyle Square, walking distance from the University of Melbourne and RMIT, was a key selling point” and the extension of the CBD into the north has “transformed historic precincts like Lygon Street, bringing a new wave of investment and occupation,” particularly an “increased demand from office developers, office tenants and hospitality providers”.
Nearby, the construction of Melbourne Metro Rail’s five new train stations is underway, delivering Parkville Train Station beneath Grattan Street, Carlton, and connecting Victoria’s education, health and research precincts to the metro rail network for first time.
“Parkville Train Station is set to revolutionise the precinct’s status as a commercial and hospitality destination and will deliver a new depth of 24-hour activation.”
“186-190 Lygon Street is already immersed in the world-class lifestyle precinct, with Princes Park, Carlton Gardens and some of Melbourne’s finest restaurants, cafés and luxury retail all within walking distance.”
For more information, please contact Joel Wald 0412 353 252