South Yarra nightclub The Emerson sold
The site of swanky South Yarra nightclub and celebrity hot spot The Emerson has sold.
A “local private investor” bought the building at 141-145 Commercial Rd from its Singapore-based owner, for an undisclosed figure understood to be in the vicinity of the $11 million price expectations.
But the sale doesn’t mean the ritzy night spot has called last drinks — ex-North Melbourne teammates Glenn Archer and Leigh Colbert, and their business partners, will continue running the award-winning venue from the site.
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The tri-level building with a heritage facade spent seven weeks on the market before the deal was done.
Colliers International selling agents Guy Wells and Oliver Hay said they received “strong interest and multiple offers from a wide array of buyers” in that time.
Wells says the buyer had “a number of other property investments” in Melbourne, but he couldn’t reveal much more about them or the price they paid for The Emerson building.
The listing marked the first time the property had been offered for sale since The Emerson opened in 2013, following a multimillion-dollar refurbishment.
CoreLogic records show the property last changed hands for $4.95 million in 2011.
But Wells previously told the Herald Sun Archer, Colbert and their business partners paid closer to $6 million for both the building and the business being run from it — Melbourne’s most famous gay club at the time, The Market.
The Emerson went on to win Nightclub Of The Year at the Australian Bartender Magazine Bar Awards in 2014, the year after it opened, and two more times in 2015 and 2017.
The building was sold with a 10-year lease to The Emerson, with fixed annual rent increases and two five-year renewal options, with the buyer set to pocket a $640,000 starting annual income.
Wells says the listing “represented an opportunity to own the site where Melbourne comes to celebrate”, adding its prominent location and the secure nature of the investment, having a long-term lease in place, were major drawcards for the buyer.
Scarcity also played a role in the property’s popularity, the agent says: “There’s been very few hospitality-based, securely-leased investments offered for sale, so there’s an appetite for them.”
He has also listed the site of Port Melbourne’s North Port Hotel, with a 15-year lease to the pub operators in place, an October 17 auction date, and price expectations in the “early $3 millions”.
The Emerson director Martin Hinkley says the venue “(looked) forward to continuing to host many of Melbourne’s favourite events (and) entertaining and celebrating our guests”, especially with the Spring Carnival and Christmas season on the horizon.
The nightclub’s 1434sqm of floorspace has capacity for 675 patrons and features multiple eating and drinking spots, including the VIP Cocktail Bar and Lounge, The Emerson Club and The Emerson Rooftop.
It also has a valuable late-night liquor licence allowing trade to 5am.
This article from The Herald Sun originally appeared as “The Emerson: South Yarra site of nightclub, celebrity hot spot sold”.