St Kilda Road’s iconic building hits the market at an estimated $85 million

In a major move on Melbourne’s commercial property scene, an offshore private investor is poised to offload the prominent 420 St Kilda Road property, with industry insiders expecting it to fetch in the vicinity of $85 million. This highly regarded corner site in Melbourne’s bustling heart stands as a prime 100% freehold offering that’s likely to draw keen interest from investment managers and discerning private purchasers.

The building at 420 St Kilda Road is celebrated for its distinctive and enduring glass curtain façade. It provides an impressive Net Lettable Area (NLA) of 10,435 square metres, with floor plates typically around 1,028 square metres, complemented by 132 car parking bays. Its current 75% occupancy includes a variety of tenants, laying a solid income foundation with ample room for return enhancement for the future owner.

Located at a prime intersection where St Kilda Road meets Toorak Road, the site boasts the highest permissible structure height of 65 metres, with minimal setbacks, offering exceptional potential for additional NLA or redevelopment opportunities.

The sale is being managed by Cushman & Wakefield’s team of Leigh Melbourne, Nick Rathgeber, Daniel Wolman, and Oliver Hay. Highlighting the property’s unique appeal, Leigh Melbourne pointed out its suitability for private and institutional investors, particularly given its redevelopment potential. “This property stands out as a premier investment opportunity, especially for those in search of prime market entries,” Melbourne said.

420 St Kilda Road is distinguished as the only office building on its stretch to offer full-height, floor-to-ceiling curtain walls. The property has recently seen significant upgrades, including a state-of-the-art refurbishment of the ground floor lobby, lift lobbies, and end-of-trip facilities, assuring a modern and high-end environment. Melbourne also noted the economic advantages of the property, “With the present climate of rising construction costs, the already enhanced rental values render 420 St Kilda Road a savvy investment with inherent rent reversion potential and prospects for sustained income growth.”

The building’s strategic position also includes proximity to tram stops and the upcoming Anzac station, slated to open in late 2024, which is predicted to boost the local office market by providing direct connectivity to the CBD and wider Melbourne area.

Interested parties are invited to submit their interest through Cushman & Wakefield’s International Expressions of Interest campaign, which is scheduled to close on Thursday, 7 December at 4 pm (AEDT).