Melbourne Fringe Office Block Comes to Market

An office block completed little more than a year ago in a Melbourne CBD fringe suburb has been put up for sale by its developer.

Completed in 2022, 1 Sackville Street is being sold on behalf of developer Ricdanic with Daniel Wolman and Oliver Hay of Cushman & Wakefield’s Investment Sales team handling the sale.

About 2kms north-east of the CBD, Collingwood has become an attractive location for businesses and office tenants in recent years due to the suburb’s thriving creative and tech industries, which have attracted a diverse range of businesses from start-ups to established companies, according to Cushman & Wakefield.

“Known for its vibrant arts scene, with numerous galleries, theatres, and cultural events throughout the year, Collingwood has undergone significant urban renewal in recent years, with many former industrial sites transformed into modern office buildings and creative spaces,” they said.

▲ The office development in Collingwood was completed in 2022.

“This has helped to revitalise the suburb and make it a more attractive destination for businesses and office tenants.”

On the block is an eight-level office building plus ground floor retail, mezzanine and double basement for 61 cars comprising 5341sq m NLA on a 933sq m site.

The building also has hotel-quality end of trip facilities include a wellness room; high-speed fibre internet preinstalled with enterprise-grade fibre; separate air conditioning units for each floor with a system providing 50 per cent more fresh air than the Australian Standard; touchless technologies throughout the building including smartphone operated lift call button, and substantial bike storage.

▲ The block, 2km from the CBD, is fully leased.

It is fully leased to tech/digital and IT tenants including Epic Systems, Birddog, Linktree, Café Le Reve.

The anchor tenant is Healthcare Software Group, Epic Systems, which has 54 per cent of the building.

With a 3.58 year Weighted Average Lease Expiry (WALE) by income, this “highly functional and sustainable building is surrounded by an abundance of amenities offering a diverse array of options for business collaboration, entertainment and daily necessities”, the agents said.

A 100 per cent freehold interest in the asset is being offered for sale via an expressions of interest campaign closing on April 18.