St Kilda’s Greyhound Hotel sold again after $1m price cut
St Kilda’s former Greyhound Hotel site will be developed as planned after several months in limbo and more than $1 million was wiped from the cost of the patch of dirt.
After years of turmoil surrounding the one-time hub for St Kilda’s LGTBQI and drag community, peaking with the hotel’s demolition in 2017, Melbourne’s Rosenfeld family have bought the development site in a mortgagee auction that shot $1 million past its reserve.
But the $6.25 million sale was still far less than the $7.5 million developer Steller paid for the land at the peak of the market in 2017.
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The future of the former hotel site at 1 Brighton Rd, St Kilda was put in limbo when Steller collapsed in July, culminating with receivers KordaMentha listing the property for a mortgagee auction late last month.
CBRE’s Mark Wizel was one of the agents behind the sale and revealed he was disappointed with what happened to the once “iconic” hotel.
“When you think about all the land available within a 3km radius and the suitability of that land to do 30 or 40 apartments, and this does feel like somewhat of a waste,” Wizel says.
“I understand where the community has been coming from. These things need to be better thought out at the government level. Once the permit is there, it’s too late.”
The Greyhound’s popularity with St Kilda locals sparked multiple attempts to save the 163-year-old pub, but its historical and social significance wasn’t enough to convince Planning Minister Richard Wynne to intercede.
The new owners intend to develop the site as planned by Steller, but are expected to retain the seven-storey project’s apartments and three ground-level retail spaces as rental properties.
They were one of eight local parties to bid for the land, pushing it from a low-ball $2.5 million first bid past its $5.2 million reserve.
“It was a fantastic auction and I think it demonstrated the confidence that developers have got,” Wizel says.
Despite the strong result, he estimated Melbourne’s development market was only about 40 per cent recovered from the city’s property market correction.
“While $1 million over reserve would seem to be an indication the market is well on its way to being fully recovered, my view is we are probably 40 per cent,” Mr Wizel said.
“If this wasn’t a corner site and in such a location, I don’t think we would have seen that depth of bidding.”
It was also one of a very limited number of Melbourne sites ready to be developed within a year, Wizel adds.
This article from The Herald Sun originally appeared as “Greyhound Hotel site sold at $1 million discount to be rental hub”.