Another major Oakleigh site sold to developer

The revitalisation of the Oakleigh business district in Melbourne’s south-east looks set to gather pace, after the sale of another major development site.

The prime 892sqm site, which is currently home to four office and retail tenancies and sits beside Oakleigh Station, sold to a developer for $3.5 million after attracting interest from a number of potential buyers.

With the potential for a development of more than five levels, subject to council approval, the corner block at 12-14 Johnston St sits amongst other recently developed or soon-to-be developed properties in the suburb’s major activity centre.

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Its sale to a local developer comes on the heels of a deal for the nearby 2-4 Atherton Rd office building, which is also expected to be developed, with the potential to soar up to eight levels.

Both properties were marketed by Crabtrees.

Selling agent for 12-14 Johnston St, Rodney King, says with multiple potential uses for the site, it remains to be seen exactly what the buyer’s plans are.

12-14 Atherton Rd in Oakleigh currently has four office and retail tenancies.

“There were multiple parties doing their numbers trying to see what the best outcome for the site was,” King says.

“We believe that it was ideal for a mixed-use offering combining retail, commercial and residential.”

“We’re experiencing strong enquiry on commercial and industrial properties, with buyers looking to secure assets with income and future value-add potential.”

Crabtree’s director Chris McKenzie says the site generated significant interest.

“We fielded many enquiries before negotiating the sale to a local developer for $3.5 million, reflecting a land rate of almost $4000 per square metre,” he says.

Crabtrees also recently sold a fully renovated freestanding commercial property at nearby 5 Station St, which was also secured by a local investor for $1.05 million.

The 140sqm building on a 175sqm site is currently leased for $33,000 per annum to an established tenant, and was sold after passing in at auction.

“Though we didn’t achieve a sale on the day of the auction, the extensive marketing campaign leading up to the event certainly piqued a lot of interest from local investors,” selling agent Niki Drendel says.