Port Melbourne site sold for potential development

A Port Melbourne potential development site has been sold for $3.425 million after spirited auction bidding.

The sale price reflected a yield of 3.6%, or $5,385 per square metre of land.

The 636-square-metre property at 11 Nott Street is about 400 metres from Port Phillip Bay and some 50 metres from the Bay Street shopping precinct.

Fitzroys selling agent Mark Talbot says the site, currently as a recording studio and office, is suited to being turned into a multi-level residential complex after the lease expires.

The site, which currently returns $125,000 per annum plus GST, has a six-year lease from April 2011 with no further options to the tenant to extend.

The property is zoned mixed use and adjoins two residential apartment complexes, both of which are six levels.

“This area of Port Melbourne has undergone significant gentrification over recent years with the development of Beacon Cove,” Talbot says.

“There are numerous multi-level apartment complexes including the Bianca Apartment complex, which incorporates a Thomas Dux Supermarket, First Choice Liquor, gymnasium and office accommodation.”

A mixed-use office, cafe and warehouse property on Nott Street with potential to develop 50 apartments sold in March for $4.25 million through Richard Curtain and Nick Bade at Lemon Baxter South Melbourne after being offered with vacant possession.