Exclusive selling agents, Colliers’ Karen Wales, Robert Papaleo and Matt Stagg, in conjunction with JLL Hotels & Hospitality’s Peter Harper and Nick MacFie, are bringing Melbourne’s first significant vacant possession opportunity in five years to market with transaction manager Kordamantha Real Estate.
Oaks Melbourne on William Suites is situated within the “Art on the Park” development on the doorstep of Flagstaff Gardens. It comprises 220 studio apartments which have an average size of 38 sqm, one of the largest in the Melbourne CBD, and come with a kitchenette and balconies offering uninterrupted views over the picturesque gardens out to Docklands and beyond.
Karen Wales said, “The sale of 350 William Street affords the ability to enter or expand an existing foothold in the Melbourne market through a large-scale asset with vacant possession. Not since the sale of the Pullman on the Park in 2018 has an opportunity of this nature been presented to the market, such is the scarcity of these offerings.”
“The existing hotel provides an excellent base to continue as-is under a new brand or pursue a more comprehensive refurbishment and repositioning strategy. Furthermore, there is also the opportunity for various alternative accommodation uses, including build-to-rent or co-living,” Ms Wales added.
The property is situated within the Flagstaff Precinct on the northern side of the Melbourne CBD, a bustling seven-day-a-week precinct led by the adjoining legal precinct and Queen Victoria Market, Melbourne’s most visited tourism destination. The area is characterised by parklands and a mix of commercial, residential, hotel and student accommodation uses.
“Melbourne’s CBD has witnessed a strong evolution in recent years with much investment and development activity focused on its northern end,” said Mr Harper. “One particular aspect that will positively impact the hotel is the impending $1 billion-plus transformation of Queen Victoria Market and the nearby Melbourne Metro Tunnel that will allow greater cross-city access for further economic activity on this side of the CBD.”
Mr Harper added, “The fundamentals of Melbourne’s hotel market that resulted in such strong trading performances and investment levels pre-pandemic have only been reinforced over the past 12 months. In 2022 average daily rates surged, and occupancy levels were much higher than anticipated. For these reasons, Melbourne remains firmly on the radar of global investors and assets with genuine upside are at the top of their list. As such, we anticipate this asset will draw considerable interest.”
The property is being offered for sale by an International Expressions of Interest campaign closing on Wednesday, 22nd March 2023, at 12pm (AEST).