Colliers announce the sale of a former warehouse building at 122 Chapel Street, St Kilda. The property was sold to a local owner occupier, Absolute Immigration, for $4.215 million following a highly competitive Expressions of Interest campaign. The sale achieved a land rate of $6,180 per square metre and a yield of 5.6%, with 64 enquiries and four offers received.

Ben Baines, Colliers Director, Melbourne Metro Sales | Investment Services, said, “The campaign generated significant interest from local owner-occupiers and developers, seeking a well-located asset that allows high-density development in the future. The four-week campaign resulted in four formal offers, with an unconditional sale five days after the EOI close.”

The new owner, Absolute Immigration, will be relocating from nearby suburb. The two-level, 1,160sqm building has been exquisitely refurbished to accommodate both functional office and creative studio spaces. Currently leased to two tenants with lease expiries in September 2025, the property presents a unique opportunity for an owner-occupier to move in at lease expiry, or for an investor to renegotiate with the tenants or explore redevelopment options (STCA).*

Eddie Foulkes, Colliers Executive, Melbourne Metro Sales | Investment Services, added, “The sale of 122 Chapel Street underscores the robust demand for mixed-use properties in prime locations. The property's flexible zoning offers diverse development possibilities, enhancing its appeal as an investment. In the current market, owner-occupiers are particularly active in seeking value-add opportunities under $10 million, reflecting a strong interest in strategic investments that promise significant returns.”

Strategically positioned on the boundary of St Kilda and Balaclava, 122 Chapel Street is located in one of Melbourne’s most desirable areas, just 1.5km north of St Kilda beach and 6.5km southeast of the Melbourne CBD. The property commands a large site on Chapel Street, one of Melbourne’s premier retail and hospitality thoroughfares, blending industrial heritage with contemporary creativity.

Alex Browne, Associate Director, Melbourne Metro Sales | Investment Services, said, “Chapel Street is one of Melbourne’s most iconic and well-known thoroughfares. Its proximity to St Kilda beach and the Melbourne CBD, along with its prime location on Chapel Street, made this property exceptionally appealing. The blend of industrial heritage and contemporary creativity in this area further enhances its attractiveness to both owner-occupiers and investors.”

The sale was managed by Colliers agents Ben Baines, Eddie Foulkes and Alex Browne together with Ted Dwyer of Ray White Commercial MC, who acted for the purchaser.

Related Readings 

Premium Eagle Farm industrial property sold - Colliers | The Industrialist

Melbourne Warehouse with National Tenant investment for sale by Colliers | The Industrialist