Hot property: Fire station transformed into unit block up for sale

A heritage-listed fire station redeveloped into a boutique apartment block returning $200,000 per year in rent is expected to stoke interest with investors seeking a unique asset.

The 100-year-old building in Coburg in Melbourne’s inner north has been converted into a three-storey unit block featuring four one-bedroom and four two-bedroom units.

The character property at 729 Sydney Road, Coburg, which goes under the hammer on 22 March, was converted to residential just five years, ago, making it rare product compared to other unit blocks on the market, according to sales agent Mitchell Boys of Jellis Craig Northern.

The apartments have modern fitouts and large floorplans. Picture: realcommercial.com.au

“It was one of the classic ones from the 1920s with the brass pole,” he said. “The guys would sleep upstairs and slide down. Where the trucks used to be is actually where the car park is.”

All the units are tenanted and the apartment building offers rental returns of more than $200,000 per year, Mr Boys said, with the property likely to spark interest with passive investors or superannuation funds with $4 million to burn.

Mr Boys said most other unit blocks offered to the market recently had older fit-outs and required upkeep to meet Victoria’s minimum rental standards for properties.

“What’s happening is you’re getting a large amount of apartment blocks hitting the market, but they are ones that need a gut and a rebuild,” he said.

The former fire station converted into an eight-unit apartment block is going to auction with a $3.9-$4.29m price guide. Picture: realcommercial.com.au

High interest rates and increased maintenance costs meant investors were offloading properties that required an injection of capital, Mr Boys said.

“It’s unusual to get a development that’s only five years old up for sale. I don’t think you could replace it with today’s cost of construction.”

The bays where fire engines once parked have been converted to stacker parking for residents. Picture: realcommercial.com.au

Converted fire stations are hot property given their rarity, character facades and prime locations, often in inner urban neighbourhoods.

PropTrack economist Anne Flaherty said residential properties converted from industrial or commercial builds were appealing to buyers, and adapting old buildings into homes could help alleviate the housing crisis.

“Given the current shortage of housing, we are likely to see more developers target commercial properties that have the potential to be converted,” she said.

Converted residential buildings tend to be unique and full of character and history, Ms Flaherty said, meaning these properties often sell for a premium.

“However, often these conversions are not straightforward,” she said. “Even if a property has the necessary zoning to allow for conversion to residential, it can be an expensive process.”

“Additionally, heritage overlays can complicate the process and impact the scope of the development.”

Other industrial and commercial conversions creating a buzz with buyers include electrical substations, churches and even schools.

A two-bedroom apartment in this converted Fitzroy North fire station is going to auction with a $780,000 to $840,000 price guide. Picture: realestate.com.au/buy

In Fitzroy North, a two-bedroom apartment in a former fire brigade building is going to auction on 23 March with a $780,000 to $840,000 price guide.

Sales agent Luke Sacco of Nelson Alexander Fitzroy said character apartments converted from old, interesting buildings always received a strong response from the market, and often sold for higher prices than run-of-the-mill units.

“People like the story behind them,” he said. “It’s been young couples that are interested and it’s definitely given it a wider appeal.”

This Goulburn fire station was converted into offices several decades ago, and is now listed for sale for $990,000. Picture: realestate.com.au/buy

In Goulburn, in the NSW southern tablelands, an 1890-built fire station currently configured as commercial offices is listed for sale with a price guide of $990,000, and offers plenty of potential, according to sales agent Karl Zabel of Dunne Real Estate.

“The front facade is just extraordinary,” he said. “It could lend itself beautifully for a gallery or retail space.”

“There’s the potential to live upstairs if you’re running a business, subject to council approval.”

A luxury home converted from a Geelong fire station sold for $2.35 million in 2021. Picture: realestate.com.au/sold

A striking fire station converted into a five-bedroom home in the Geelong suburb of Newtown sold for $2.35 million in late 2021.

In Warrandyte South in Melbourne’s outer east, a mid-century former CFA fire station ready for reinvention sold for $980,000 in mid-2022.