Local owner occupier snaps up value-add asset in prominent Prahran location

A commercial building in Melbourne’s city-fringe Prahran has changed hands between two owner occupiers in a deal secured by Colliers Ben Baines, Andrew Ryan and Eddie Foulkes in conjunction with Vinci Carbone agents Frank Vinci and Joseph Carbone.

The 335sqm property, located on 52 Commercial Road, attracted over 100 enquiries from owner occupiers, investors and developers before an owner-occupier purchased the asset for $2,900,000, representing a building rate of around $8,656.

Vinci Carbone Director, Frank Vinci, said the property was sold to a local owner occupier following strong competition.

“Given the property’s shell condition, the asset presented a rare blank canvas opportunity for immediate value-add upside with potential existing use rights accommodating a variety of commercial uses (STCA) underpinned by residential redevelopment given favourable residential redevelopment allowing for up to four storeys (STCA),” said Mr Vinci.

The single-level, freehold commercial property sits on a 455sqm block of land, ideally located in the heart of Prahran, nestled amongst a plethora of retail amenities, including Prahran Market, Chapel Street and Greville Street, with ease of access to major roads and multiple public transport options.

Ben Baines, Colliers’ Director of Investment Services, added, “Despite a rapidly changing interest rate environment, commercial owner-occupiers, who are not chasing the same return as commercial investors, remain increasingly active.”

“There are no signs of this part of the market slowing down anytime soon as Colliers is currently tracking over 60,000m2 of office owner occupier requirements in the city fringe,” Mr Baines concluded.