Boutique developer CostaFox is doubling down on the growing reputation of Melbourne’s hippest office market, inner-east Cremorne, having swooped on a site opposite its planned new office development in Gordon Street.
Hot on the heels of gaining a planning permit for a seven-level, 5000 square metre office building on its site at 1-11 Gordon Street, CostaFox has purchased the land directly opposite at 22-26 Gordon Street where it hopes to build another 5000 sqm office.
Led by Michael Fox, the developer paid $11.5 million for the 974 sqm site at 28 Gordon Street, which was offered by a group of townhouse owners who banded together to put their seven Neometro-built homes on the market.
The deal values the land at a rate $11,800 per sqm.
“The site complements our other existing holdings in the street,” Mr Fox said. The transaction was negotiated by Teska Carson’s Matthew Feld who said the owners attracted a premium by offering their homes in one line.
The tiny suburb of Cremorne has become a sought-after hub for technology and creative companies, pushing up land values and rents and prompting a slew of new developments.
Last year Caydon Group secured accounting software firm MYOB as a tenant in its mixed-use Malt District on the river’s edge at the former Nylex silo site.
Seek will move into a new office at 60-88 Cremorne Street and online real estate business Domain is negotiating space in investment firm Bayley Stuart’s speculatively built office on the grounds of the old Nuttelex factory at 600 Church Street.
Perched on the edge of Melbourne’s CBD, Cremorne’s success has also fed a mini city-fringe office development boom in nearby suburbs such as Collingwood, South Yarra and South Melbourne.
Having gained a planning permit for its first Gordon Street office, which is on the site of the former Sing Sing Studio, CostaFox will move ahead with construction of a seven-level office that it hopes to complete next year.
Mr Fox said the office’s 900 sqm floorplates designed by Fieldwork Architects would hit a “sweet spot” because it was timed to come to market before a flood of competing projects.
If approved, the sister building on the newly purchased site would be similar in size and designed by the same architects, he said.