South Melbourne’s recently developed City Edge Apartment Hotel has been listed for sale. Located at 51-59 Palmerston Crescent on a 789sqm corner site, the South Melbourne five-storey hotel has a 10-year lease to City Edge. The building comprises 125sqm of retail space on the ground floor, 69 apartments, a hotel reception, administrative offices, a conference room, a gym, and basement parking.
The serviced hotel apartments offer 69 lettable keys configured into 57 studio apartments and 12 one-bedroom apartments, eight of which interconnect with a studio apartment to make a two-bedroom apartment. CBRE’s Scott Callow together with Stonebridge’s Kevin Tong are managing the sale via an Expression of Interest campaign closing 30 November 2023.
“With such a central location, right next door to the Albert Park grand prix track and just 2km from the Melbourne CBD, City Edge Apartment Hotel will appeal to both the corporate and leisure market. This freestanding freehold investment, which is only three years old, offers investors the minimal capital expenditure of a new building with depreciation benefits,” Mr Callow said.
Mr Tong added, “We are seeing an increasing demand from ‘nontraditional’ hotel investors enquiring on these campaigns, with the private investors, both local and offshore, being attracted to the long-term leases to strong covenants and significant underlying land value.”
“We expect strong interest across the board given the blue-chip location and the familiarity buyers will have with the area. Furthermore, given the hotel was only recently built there will be significant tax depreciation benefits which buyers will resonate too as well.”