Michael Renzella lists another downtown asset

By on August 17, 2022 0

Hotel investor Michael Renzella is selling another low-rise downtown building with development potential.

At 9 Prince Patrick Street, Richmond – near Church Street, also on the Cremorne border, the 451 square meter two-storey asset comprises two self-contained offices.

The 358 m² Commercial 2 zoned site, with 15 meters of street frontage, could be extended or replaced with something higher.

It currently earns an annual rent of $213,000 excluding GST.

Assuming a 5% return, the asset could trade for over $4.2 million.

The listing comes a year after Mr Renzella sold the three-level Claremont Hotel in South Yarra to V-Leader for $22 million.

On 906 sqm at 189 Toorak Rd, this landmark has been offered a permit ready for a 12-storey redevelopment.

Ten months ago, the seller offered a land-rich hotel at Fitzroy St in St Kilda with a guide for over $20 million (story continues below).

9 Prince Patrick Street

Richmond is about 2.5 kilometers east of Melbourne.

“The versatile offering will appeal to a range of buyers in a region that has seen unprecedented demand for tenants and owner occupiers, particularly creative and information technology businesses,” said Teska Carson Luke Bisset, who markets the property with Michael Ludski.

“The demand for offices in Richmond has been so great that it has forced tenants to look to neighboring Cremorne, which in turn has increased national awareness as a key marginal market,” he added.

“The future of these sister markets would appear assured as post-COVID demand for peripheral and suburban office markets continues to outstrip supply,” according to the executive.

Carsales.com.au, REA Group, Red Energy, Seek, Tesla, Uber and Walter Disney are among the occupants of the Richmond/Cremorne area, Mr Ludski said. “These office buildings have proven very popular with a range of businesses, particularly those whose executives live in the eastern suburbs who appreciate the ease of access and proximity to cafes, restaurants and bars that Richmond is for. so well known”.

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