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!

Commercial Real Estate Market Average TCI Difference TCI Result The Pros The Cons The Challenges The Reveal The Facts Johnston Street Amalgamation

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
Commercial Real Estate Market Average TCI Difference TCI Result The Pros The Cons The Challenges The Reveal The Facts Johnston Street Amalgamation
TCI Commercial Real Estate For Sale For Lease Sold Leased The Facts Property Management Richmond Real Estate Cremorne Real Estate Collingwood Real Estate Fitzroy Real Estate Abbotsford Real Estate 
Commercial Real Estate Market Average TCI Difference TCI Result The Pros The Cons The Challenges The Reveal The Facts Johnston Street Amalgamation
TCI Commercial Real Estate For Sale For Lease Sold Leased The Facts Property Management Richmond Real Estate Cremorne Real Estate Collingwood Real Estate Fitzroy Real Estate Abbotsford Real Estate 

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

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
Commercial Real Estate Market Average TCI Difference TCI Result The Pros The Cons The Challenges The Reveal The Facts Johnston Street Amalgamation
TCI Commercial Real Estate For Sale For Lease Sold Leased The Facts Property Management Richmond Real Estate Cremorne Real Estate Collingwood Real Estate Fitzroy Real Estate Abbotsford Real Estate 
Commercial Real Estate Market Average TCI Difference TCI Result The Pros The Cons The Challenges The Reveal The Facts Johnston Street Amalgamation
TCI Commercial Real Estate For Sale For Lease Sold Leased The Facts Property Management Richmond Real Estate Cremorne Real Estate Collingwood Real Estate Fitzroy Real Estate Abbotsford Real Estate 

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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Campaign performance

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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