CBRE Melbourne’s Middle Markets team is bringing to market a new freehold office building located in one of Australia’s most vibrant office markets.

The property, at 51 Langridge Street, Collingwood, will comprise 11 levels of high-quality, light-filled office accommodation with a ground floor café, end-of-trip facilities, communal areas and 17 secure basement car parks. 

Located circa 1.5km from the CBD, the property is surrounded by popular amenities, including services, hospitality and public transport options and is expected to be completed by the end of 2019.

At a glance:

• 51 Langridge Street, Collingwood, development expected to sell for circa $30
• The building comprises 3,082 square metres of space over 11 levels 
• A ground floor café, end-of-trip facilities, communal areas and 17 secure basement car parks add to the appeal

CBRE’s Scott Orchard, Josh Rutman, Mark Wizel and Lewis Tong have been appointed to run an Expressions of Interest campaign which will close on Thursday 31 October at 1pm.

CBRE Director Scott Orchard said the asset represented an outstanding opportunity for investors to secure a premium, defensive office product offering attractive depreciation benefits. 

“The design of the property has been shaped by strong occupier demand for smaller format, whole floor accommodation, which offer strong prospects for future rental growth given the strategic proximity to the Melbourne CBD,” Orchard said.

The 3,082 square metre building is projected to bring in a total annual income of $1.6 million net and has an average lease profile of six years.

Orchard said there were 11 tenancies with agreements for lease on most of the building and strong interest on the few remaining tenancies with five-year rent guarantees on offer.

Pace Development Group recently delivered ‘Pace of Collingwood’ – a nine-storey apartment building diagonally opposite 51 Langridge Street, consisting of 79 apartments on the former Smith Family Head office site. 

Pace Managing Director Shane Wilkinson said the company had been building and developing in the Collingwood and City of Yarra market for several years and that Collingwood continued to explode in popularity and strengthen as a diversified commercial, retail and domestic market where people want to live, work and play. 

“Given the past take up of new residential product which has seen many developments be completed recently, comes a growing demand for modern office accommodation,” Wilkinson said.

“In addition to the quality, high specification and standard of finish, the building has many cutting-edge design features by SJB Architects and Interiors, which will differentiate it in the market – ensuring ongoing tenant appeal.” 

CBRE Director Josh Rutman said the sale of the freehold represented “a combination of the hottest product, in the hottest location, in the most hotly contested and spoken about market sector”.

“The full floor tenancies maximise the building’s net floor area and, in turn, income ability – offering a clever, diversified income strategy and ensuring the building does not need to rely on a big pre-commitment to underpin construction,” Rutman said.

The CBRE Expressions of Interest Sales Campaign concludes on Thursday 31st October at 1pm.

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