Buy Melbourne’s former ‘CBD Nightclub’

Developer Golden Age Group has called last drinks on a former nightclub they bought in one of Melbourne’s red brick laneways.

CBD Nightclub ran a mix of techno and indie-alternative beats as a three-storey club at 12-14 McKillop St until just before Golden Age Group, who have a number of projects around Melbourne, bought the five-storey building in 2015.

While Jeff Xu’s development firm picked it up for $11.55 million, it’s expected to sell in the $10-$20 million bracket.

CBRE’s Mark Wizel and Nathan Muffale are handling the sale of the 1706sq m of floorspace across five levels.

Muffale says it is expected to attract investors and those looking to set up shop inside the former nightclub.

With hospitality groups also expected to show interest, it’s even possible another nightclub owner might buy the site.

“There’s no reason why it couldn’t be a nightclub owner again,” Muffale says.

“We will entertain interest from all groups.”

The building also comes with a corner position in the red brick laneway.

Interest is expected to come from local buyers as well as international groups, with Melbourne’s commercial market attracting strong results at auction in recent weeks.

“It’s a pretty strong market in Melbourne,” Muffale says.

“And freehold buildings like this rarely come up in the CBD, especially vacant possession.

“Definitely sub-10, potentially sub-five a year, in terms of this kind of building with vacant possession.”

Golden Age Group is parting ways with the building about three years after purchasing it, and have said they will be looking for another site.

“12-14 McKillop Street presented a hospitality and commercial opportunity for Golden Age Group, however the site no longer meets our requirements,” a Golden Age Group spokesman says.

“We are excited to offer the space to another purchaser and we will continue to search for a site that meets our needs.”

The developer has worked on past CBD projects including apartments at Victoria One and Collins House, plus the Sheraton Melbourne Hotel on Little Collins St.

12-14 McKillop St goes under the hammer on October 12, at 12.30pm.

This article from the Herald Sun originally appeared as “Golden Age Group call last drinks on former Melbourne CBD Nightclub”.