Student digs could drive value in West Melbourne building
11-17 Jeffcott St, West Melbourne, is listed for sale with price hopes of $19.988m.
Student accommodation and apartments could be the pot of gold at the end of this rainbow on the edge of Melbourne’s CBD.
The 468sq m property at 11-17 Jeffcott St, West Melbourne, has been listed for nearby $20m as an investment with significant future development upside.
The property is currently returning around $800,000 a year in rent, but presents a significant upside for new owners.
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Commercial Bureau director Gideon Marcus said the property would suit investors with an eye to future development as student accommodation or apartments.
“This is an exceptional opportunity for investors or developers looking to capitalise on the enormous growth we are seeing, and will continue to see, in and around Melbourne’s CBD for both student accommodation and apartments,” Mr Marcus said.
“As an investment it offers an immediate, fully leased, return of close to $800,000 from five tenants in the rapidly growing education sector, while the development options, subject to council approval, would obviously include student housing and apartments.”
11-17 Jeffcott St, West Melbourne, is listed for sale with price hopes of $19.988m.
A “Massing & Yield” study from Fender Katsalidis suggests an estimated 18-level building, with ground floor retail, basement parking and apartments, may be suitable for the site based on calculated assumptions.
Mr Marcus said he expected the property to attract a huge amount of interest given strong Government support to drive the demand for educational facilities and student accommodation in the CBD.
The latest Australian Government data shows there are more than 140,000 international students attending Victorian schools, with the CBD campuses of RMIT and Melbourne University accounting for nearly 41,000 of those.
11-17 Jeffcott St, West Melbourne, is listed for sale with price hopes of $19.988m.
The State Government’s $53 million International Education Recovery Plan 2025 aims to reset and stimulate the sector and build on Victoria’s performance as a leader in education excellence and student experience.
The property is for private sale with an asking price of $19,988,000 representing a 4 per cent return.
The two-storey building is close to the CBD legal precinct, Flagstaff Gardens and Queen Victoria Market.
The property comprises a two-level education facility, with a 9B certificate for 260 people. The 468sq m site is zoned for Special Use.
The ground floor includes four commercial kitchens in new condition, storage, reception area, dining area, and amenities, while the first floor has been fitted for the requirements of a CRICOS School, with classrooms, offices and reception.
