the facts

THE johnston street amalgamation

329 Johnston street & 236 nicholson street

ABBOTSFORD

Sold 329 Johnston Street Abbotsford TCI - An in depth look behind the scenes of the campaign. We'll explain the pros, the cons, the challenges and the reveal!

THE PROS

Three street frontage development site
Draft Johnston Street Structure Plan just released – rezoning the property from C2 to C1 while also defining development potential
Vacant possession allowing development to commence at will
Proximity to the Yarra River and Johnston Street acting as a thoroughfare between Kew & the CBD

THE CONS

Property adjoined sensitive residential interface, thus creating substantial and steep development set backs
While the rezoning and development potential appeared great on initial inspection, on a detailed analysis, the site was quite restricted and left little to no upside above the recommended height
No building to facilitate holding income to land bank buyers
Possible contamination with market knowledge of the property being used as a service station previously
Timing to rezone – while the rezone was considered very likely, it was just as likely the rezoning would take years
Sold without a permit – creating uncertainty in both zoning and planning

Sale The Johnston Street Amalgamation 329 Johnston Street Abbotsford TCI 236 Nicholson Street Abbotsford

THE CHALLENGES

Land rates were less than $4,000 per m² – our expected price was to be a considerable land record for the area
The combination of the lack of holding income and uncertainty around if the rezoning would occur, which was likely, but more so the timing – this caused interested parties to factor a level of uncertainty into their considerations
Property was marketed prior to the Commercial Office market push – this was sold as a residential development, pending rezoning
Even with the market shift to Offices, the property was in a ‘dead zone’ – with little to no amenity nearby
Located on a busy intersection with very little stopping traffic, the property was viewed as a very busy major road
Market knowledge of apartment sales in the vicinity had not exceeded $8,500 per m² – with a large development nearby achieving circa $8,200 per m² on average

THE REVEAL

After a long campaign process, TCI sold the property for $8,400,000 – which equated to $5,000 per m²
Market expectation was circa $4,000 per m²
Final result being 25% above market expectations

the facts

market expectation

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PER M²

RESULT

$

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k

PER M²

difference

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%

higher

Campaign performance

PER M²

RATE

market average

RESULT

the facts

THE johnston street amalgamation

329 Johnston street & 236 nicholson street

ABBOTSFORD

THE PROS

THE CONS

THE CHALLENGES

THE REVEAL

the facts

market expectation

PER M²

PER M²

higher

Campaign performance

PER M²

PER M²

RATE

market average

sold 329 johnston street

sold 329 johnston street

sold 329 johnston street

sold 329 johnston street

sold 329 johnston street

sold 329 johnston street

sold 329 johnston street

sold 329 johnston street

sold 329 johnston street

sold 329 johnston street

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