News

City Fringe Apartment Block Sells Under The Hammer

Posted on 24th September 2024

A city fringe apartment block has sold for $2.715 million after competition between multiple bidders.

A local value-add investor purchased 43-45 Alexandra Parade, Collingwood, which sold through Fitzroys’ Chris Kombi, Ervin Niyaz and Ben Liu, who acted on behalf of a local owner who had held the property for 40 years.

The sale price reflected a sharp 3.9% net yield.

The property comprises a circa 1970s brick building with six two-bedroom apartments, leased on short-term deals, with undercover on-site parking for up to nine cars.

It is on a triple-fronted landholding of 365sqm with three frontages and Mixed Use zoning.

“The property offered future potential for rental uplift, as well as the rare opportunity to acquire a Mixed Use-zoned site on Melbourne’s CBD fringe,” Kombi said.

“Collingwood has seen a significant surge in both commercial and residential development in recent years, leading to a population boom, and we continue to see investors put their money into the suburb’s evolution.”

A short distance away is the 3.9-hectare former Fitzroy Gasworks site, which is being redeveloped to provide housing, an educational hub, and sports facilities to meet a range of community needs.

The property is located close to renowned hospitality and lifestyle precinct Smith Street, which is home to a plethora of Melbourne’s most popular bars and eateries, and is also near multiple schools, and recreational options including Darling Gardens, Edinburgh Gardens and Yarra Bend Park.