10 Queens Road, Melbourne has sold for ~$30 million, marking a significant step forward in the city’s evolving commercial real estate landscape, highlighting the growing momentum behind adaptive reuse and the creative reimagining of underutilised office assets.
The transaction, secured by a local developer on an unconditional contract with a short settlement represents one of the first major adaptive reuse deals in Melbourne in recent years, converting a B-grade office asset into premium build-to-sell residential. It’s a shift that reflects both the challenges and the opportunities facing the city’s office sector, particularly in fringe precincts like St Kilda Road.
The Albert Park fronting 2,323sqm* site, with a net lettable area of 8,815sqm*, had been facing significant vacancy and leasing uncertainty as well as a significant capital works program. But what was once a liability has now become a strategic advantage: the path to vacant possession made the asset highly attractive to developers seeking to reposition underutilised office stock for residential use.
The sale was managed jointly by Cushman & Wakefield’s Oliver Hay, Daniel Wolman & Leon Ma, alongside Jozef Dickinson, Aaron Choong and Alex Browne of Colliers, on behalf of receivers and managers Patrick Loi and John Chand of Greengate Advisory. The campaign drew strong interest from a diverse buyer pool, but it was the residential vision that ultimately prevailed.
“During the final bidding stage, a notable divergence emerged between bids based on office use and those proposing residential redevelopment through adaptive reuse, with a gap of over 30%,” said Cushman & Wakefield’s Oliver Hay. “That pricing delta speaks volumes about where the market sees long-term value.”
The transaction underscores a growing recognition that not all office buildings will return to pre-pandemic occupancy levels- and that adaptive reuse may be the most viable path forward for many underperforming assets.
Jozef Dickinson of Colliers Residential added, “10 Queens Road is a prime example of a well-located but underutilised asset that can be repositioned to meet the evolving needs of the city. The St Kilda Road precinct, with its proximity to the CBD, Albert Park, and the new Anzac Metro Station underpins its higher and better use.
Couple this with premium park and bay views, the site is well placed to support high-quality residential development.”
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