Student, apartment demand to drive buyer interest
A West Melbourne commercial property, currently returning rental of more than $670,000 and with significant future development upside, is expected to fetch more than $11 million.
Located in close proximity to the CBD Legal Precinct, Flagstaff Gardens, Royal Exhibition Building, Queen Victoria Market, Royal Melbourne Hospital, Docklands and the CBD, the property comprises a two level, 868 square metre, education facility, with a 9B certificate for 260 people, on a 468 square metre site zoned Special Use.
Exclusive agent, Commercial Bureau Director, Gideon Marcus, said the 11-17 Jeffcott Street property would suit investors looking to capitalise on the strong student demand for hospitality courses and accommodation.
“This is an exceptional opportunity for investors in offering an immediate, fully-leased, return of close to $680,000 from four tenants in the popular hospitality sector of tertiary education.
“An extremely well located property such as this will also be very attractive to developers looking at future development, subject to council approval, to capitalise on the ongoing demand in and around Melbourne’s CBD for both student accommodation and apartments,’‘ Mr Marcus said.
The building’s ground floor includes four newly built commercial kitchens, storage, reception and dining areas and amenities, while the first floor has been expertly fitted out for the requirements of a CRICOS school with classrooms, offices and reception. In addition, a 30kw solar rooftop array reduces energy bills.
Mr Marcus said he expected the property to attract a huge amount of interest given strong government support and the ongoing demand for educational facilities and student accommodation in the CBD along with strong student numbers and the current shortage of housing.
Despite recent government policy to limit the rate of growth in student numbers, Victoria is expected to see 235,000 international student enrolments in 2025 with Melbourne ranked as the number one student city in Australia and fifth best student city in the world, according to Global Victoria.
The latest ABS data reveals population growth continues to be driven by net overseas migration with the largest increase of the capital cities in Melbourne which took in a net 121,400 residents. Many of these were students with the largest single area increase in Carlton which is close to both Melbourne and RMIT universities.
Savvy purchasers will also be aware of the State Government’s $53 million International Education Recovery Plan 2025 which aims to reset and stimulate the sector and build on Victoria’s performance as a leader in education excellence and student experience.
The property is for sale by Expressions of Interest closing May 15.
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