North Melbourne office block sells for $3.8 million

A private investor has purchased a  former industrial facility turned New York-style office property in North Melbourne for $3.8 million.

Colliers International’s Jeremy Gruzewski, in conjunction with ICR Property Group’s Raff De Luise, has sold 27-31 Munster Terrace in North Melbourne.

Located about 1.5km north-west of the Melbourne CBD, the property features approximately 2,447sqm of building space on a 940sqm site.

“This is a former industrial facility that has been transformed into funky office space over five levels,” Mr Gruzewski said. “It has that light and fresh New York loft feel which is often sought by creative businesses but is hard to find."He said the successful purchaser would look to lease the property and hold it as an attractive investment for their portfolio.

The property next door 88-108 Laurens Street, North Melbourne was also recently sold by Colliers International, for $2.94 million, in similar circumstances.

“Buyers are showing growing confidence in this area and seeing genuine opportunity for the future value of properties in the area. Being so close to the CBD and largely under-developed, compared to alternative fringe suburbs such as Richmond or South Melbourne, North Melbourne could and should be the ‘next best thing’," Mr Gruzeweski said.