Is this Blackburn’s next major development site?
Developers are expected to settle in for a major tilt at a significant potential development site at Blackburn in Melbourne’s east.
The site, along a Whitehorse Rd strip often branded Blackburn’s “golden mile”, is home to an Early Settler furniture outlet, as well as a Nationwide Towing site, and hasn’t changed hands since 1991.
But with developers often forced to ‘land bank’ commercial sites until their current leases expire, it’s a particular clause within both the Early Settler and Nationwide agreements that will most excite them.
Commercial Insights: Subscribe to receive the latest news and updates
Each lease includes a demolition clause that allows the buildings to be torn down, provided the tenants are provided with 12 months notice.
With street frontages of 173m, almost 8000sqm of land and 40,000 cars passing daily, Burgess Rawson’s Jamie Perlinger says the site ticks a number of boxes.
“The ‘golden mile’ precinct in Blackburn is one of the most tightly held pockets for commercial assets. It is the first time this property has been offered to the market in almost 30 years,” Perlinger says.
“The property is within one of Melbourne’s largest retail precincts with excellent visibility and high volume, passing traffic. Both the calibre of tenants and security of their respective leases demonstrates the strength of this investment proposition.”
“The asset will also appeal to developers looking at its future redevelopment potential. Its sheer size and attractive zoning, signifies the site’s underlying land value and we anticipate buyers will be drawn to the opportunity of securing almost 70 metres of Whitehorse Road frontage.”
In its current format, the site at 200-206 Whitehorse Rd and 2-8 Ashburn Place has 54 car spaces and pulls a combined rent of $546,000 per annum.
It is to be sold through expressions of interest, which close on October 31.