1 Sackville Street, Collingwood
Just 2kms North-East of Melbourne's 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.
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 being transformed into modern office buildings and creative spaces. This has helped to revitalise the suburb and make it a more attractive destination for businesses and office tenants.
One such asset that is set to hit the market is 1 Sackville Street, Collingwood, for sale through Daniel Wolman and Oliver Hay of Cushman & Wakefield’s Investment Sales team on behalf of Vendor and Developer, Ricdanic.
Completed in 2022, this brand new, eight-level office building plus ground floor retail, mezzanine and double basement for 61 cars comprises 5,341sqm* NLA on a 933sqm site and is 100% leased with major tech/ digital and IT tenants including Epic Systems, Birddog, Linktree, Café Le Reve. Its anchor tenant is Healthcare Software Group, Epic Systems, which encompasses 54% 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.
According to Daniel Wolman, Cushman & Wakefield’s International Director & Co-Head Investment Sales, VIC this property is a lucrative opportunity due to high-calibre tenants; and being a highly functional and sustainable building situated within a thriving Melbourne location.
“With public transport in close proximity via trams, trains, or buses, and access to the Eastern Freeway, Sackville Street is helping to rewrite Collingwood’s commercial market as the suburb for tech and creative companies, so we are seeing a lot of interest from investors looking to attract these types of tenants.
"Furthermore, investors who are interested in sustainable and environmentally friendly buildings may be drawn to Collingwood, as there is a growing trend towards eco-friendly offices and buildings in this area," he said.
Architecturally designed with wellness and tenant fulfilment in mind, the building offers generous amounts of natural light and its thoughtful End of Trip Facilities and breathtaking rooftop also make for a highly attractive prospect.
Chris Idle, Director at Idle Architect Studio said “This building was designed as a timeless addition to this eclectic & dynamic precinct in Fitzroy. The lower portion of the building anchors itself to the ground, by the use of the bluestone façade that references many of the industrial and heritage buildings in the area.
“The quality of the project is self-evident in the selection of materials and the generosity of public spaces on the ground floor level. The upper tower was designed to achieve an uncompromising outlook by the use of low-iron ultra-clear glass and translucent fins that provide glare relief without compromising the vista.
“The lobby presents a substantial space that provides an impressive entry experience and acts as an informal meeting space for visitors and occupants alike. The material and finishes in this space portray a sense of quality that underlies the feel of the whole building.”
The 5-star hotel quality End of Trip Facilities features a wellness room, high-speed fibre internet preinstalled for instant activation with enterprise-grade fibre by Lightning Broadband, separate air conditioning units for each floor, an air conditioning system that has been designed to provide 50% more fresh air than the Australian Standard, smartphone operated lift call button for a contactless journey, touchless technologies throughout the building for increased hygiene and an abundance of bike storage.
Dale Brouze, Development and Project Manager at Ricdanic said “Tenants such as Linktree, Birddog and Epic, an international company that manages software for hospitals, were attracted to 1 Sackville because of its spacious rooftop terrace, superior end-of-trip facilities, outdoor balconies, wellness room and a panoramic views of the CBD and Dandenong Ranges.
“The design and location of the building has appealed to a younger generation who have ample building amenities plus access to Smith Street which was voted by Timeout Readers as the coolest strip in the world.
“Sackville Street is all about working, living and playing in the same area. During Covid, people stayed at home and they missed out on the social infrastructure of an office environment, now they want work to be similar to a home-style living as well as to be in close proximity to shopping, food and transport.”
The property is one door east of Smith Street and 150 metres north of Johnston Street in the coolest part of Collingwood, renowned for its iconic venues and vibrant culture.
Less than 750 metres to the northeast is the entrance to the Eastern Freeway and one door to the west, trams and buses run regularly along Smith Street. Hoddle Street and Nicholson Street also provide arterial access to suburbs like Clifton Hill, Fitzroy North, Carlton North, Brunswick, Northcote, and northern and eastern suburbs. Victoria Train Station also within proximity.
Oliver Hay, Cushman & Wakefield’s International Director & Co-Head Investment Sales, VIC believes
“Collingwood has become a sought-after location for office occupiers due to its strategic connectivity to both the Melbourne CBD and the inner east suburbs, as well as its thriving ecosystem of creative industries that continues to expand.
“Collingwood is full of incredible architecture, a dynamic art scene, lively hospitality venues and vintage stores. The atmosphere is creative and aspirational. Perfectly positioned to capture the Millennial office worker commuting from the Northside, tenants will enjoy the easy access to a business hub without the bustle of the CBD” he said.
1 Sackville Street caters to office tenants, with floor plate requirements ranging from between 400sqm – 800sqm who require a modern eccentric space to make their own”. All of this with ground floor retail to provide bustling Collingwood hospitality at its base.
Mr Hay believes investors who are looking for a stable and reliable income stream with strong potential for long-term capital appreciation will be quick to jump on this opportunity.
A 100% freehold interest in 1 Sackville Street, Collingwood is offered for sale through Cushman & Wakefield via International Expressions of Interest (EOI) closing Thursday 18 April 2024 at 12pm.
