Exclusive Chance to Capitalise on Mixed-Use Potential in a Desirable North Melbourne Location

An affordable development site in the top inner-Melbourne precinct carries enormous potential for residential development

JLL is marketing a North Melbourne development site with the potential to deliver a range of housing options as part of a mixed-use project (STCA) on the doorstep of Melbourne’s CBD.

Known as The Union, the site is strategically positioned within one of Melbourne’s leading medical, education and technology precincts with a population anticipated to increase by 4.6 per cent per annum, the strongest rate for a residential area within the City of Melbourne.

Zoned “mixed use”, the property located at 3-7 Union Street and 5 Danaher Lane comprises a 804 square-metre site and two older style warehouse buildings. 3-7 Union Street is currently on a month-to-month tenancy and 5 Danaher Lane is being offered with vacant possession, providing several opportunities for holding income or immediate re-development of the site.

Tim Carr, JLL Capital Markets Victoria, said the site would ideally suit townhouse development.

“This is a fantastic opportunity and one which will certainly be on the ‘must consider’ list for developers looking to take advantage of an affordable purchase within a residential market which has a critical shortage of stock,” he said.

“The fact that the property boasts a brilliant location on the edge of Melbourne’s CBD will provide further reassurance from any future re-development. The asset is likely to attract a range of local and interstate interests, and even offshore buyers, including smaller developers and landbankers,” he said.

Mr Carr is marketing the property with JLL colleagues Jesse Radisich, Maddie Pizzey and Anthony Tregear from ASL Real Estate.

Located around 2 kilometres from Melbourne’s CBD, and close to Errol and Queensberry streets as well as the soon-to-be $1.7bn redevelopment of Queen Victoria Market precinct, the property sits within an attractive residential pocket close to all essential amenities including shops and public transport.

Queensberry and Errol streets are home to a wide range of trendy cafes, restaurants, convenience retailers and grocery stores.

“Everything you could need is within easy walking distance including the tram stop on Queensberry Street and the North Melbourne and future Arden train stations, while access to major freeways including CityLink are just a short distance away,” Mr Tregear said.

Errol Street Reserve, North Melbourne Recreation Centre, Royal Park and Flagstaff Gardens are all within close proximity as are Melbourne and RMIT universities, and Melbourne’s hospital/medical precinct, which includes The Royal Melbourne Hospital, The Royal Women’s Hospital, the Peter MacCallum Cancer Centre and The Royal Children’s Hospital.

The precinct is expected to be home to 80,460 employees by 2036 with the Victorian Government delivering the biggest hospital project in Australia’s history including extensive upgrades to the Royal Melbourne Hospital and the Royal Women’s Hospital at an overall estimated value of $6 billion.

Ms Pizzey said the flexible, mixed-use zoning would suit a wide range of development outcomes, subject to council approval, while the approximately 54.5 metres of street and laneway access will be well noted by prospective purchasers in evaluating site access and development efficiency.

“The property’s dual street frontages will provide ideal and efficient access for any future redevelopment of the site with the potential for cost savings across the project,” she said.

The property will be sold by Expressions of Interest closing 17 October at 2pm (AEDT).