A special interest buyer has won out from developers to secure a prized 1,300sqm St Kilda Road site in an off-market transaction negotiated by Fitzroys.
Mark Talbot and Tom Fisher of Fitzroys acted on behalf of a Melbourne-based family.
Public records show the site transacted for a large sum of $7,150,000.
The site was previously occupied by Tradelink Plumbing Supplies, and is expected to make way for a new flagship showroom and offices, Talbot said.
The occupier will imminently make a planning application to Port Phillip Council for the site.
Talbot said the purchaser came in over the top of a number of developers in the off-market process. The site has previously had a permit for a premium six-storey mixed-use development with 44 apartments.
“This was a strategic off-market process in which we canvassed developers as well as special interest buyers, creating a very competitive campaign that ended with a strong result for the vendor in what has been an otherwise relatively subdued market over the past 18 months.”
The sale price reflected a strong land rate of $5,218 per sqm for the Commercial-zoned land.
“Rising construction costs and increasing holding costs such as financing and land tax were making conditions increasingly challenging for developers and our off-market targeting needed to reflect this,” Talbot said.
“The purchaser’s new offices will have excellent exposure to a large number of people every day, and will offer an easily accessible and prominent flagship store location.”