The off-market purchase of the 466 square metre site at 75-85 York Street was successfully negotiated by Ted Dwyer from RWC MC on behalf of Terraplex for $4 million.
The rare island site was purchased by National Retail Group’s Michael Spektor on behalf of a private family office client.
The Commercial 2 zoned site occupies one of the last true island sites in South Melbourne, metres from Clarendon Street and with renowned neighbours such as Coles and ST. ALi Café. The existing building, leased to Factory Sound for over 30 years offers high-quality showroom and warehouse space with multiple access points.
The property is further enhanced by a planning permit allowing a six-level mixed-use development of approximately 1,898 square metres with ground floor hospitality and a roof top terrace. While the proposed design features world-class amenities to suit a variety of occupiers and north-facing views of the Melbourne CBD, Mr Spektor said there were no immediate plans to redevelop the site due to increases in construction costs making it difficult to stack up.
“This was an exceptional opportunity; an island site with four street frontages in the heart of South Melbourne’s creative precinct,” said Ted Dwyer, director at RWC MC.
“Opportunities like this are almost extinct, there are only five island sites remaining in South Melbourne. We were able to connect the right buyer directly, off-market, by understanding both the asset’s fundamentals and the buyer’s strategic requirements.”
While the current economics of office development are challenged, Mr Spektor described the site as “the perfect counter-cyclical opportunity, with strong existing improvements and outstanding future development potential.”
The sale was conducted entirely off-market through direct buyer sourcing. RWC MC relied on their understanding of active buyer requirements and price trends to achieve the transaction without public marketing.
With construction costs and leasing incentives placing pressure on new office development across Melbourne, many investors are now targeting high-quality, income-generating properties with future upside potential. Sites like 75-85 York Street, which offer secure holding income, flexible zoning and long-term redevelopment prospects, continue to attract strong interest from both developers and owner-occupiers.
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