the facts

THE SWAN STREET COLLECTION PART 1

362 - 368 SWAN STREET

RICHMOND

Sold 362-368 Swan Street Richmond 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 Swan Street Collection

THE PROS

  • Short term lease allowing future flexibility
  • Security of well known sitting tenant, who wanted to remain in the property
  • Approved C191 Amendment, rezoning the site from C2 to C1
  • Minimal to no residential interface, providing excellent development height capabilities
  • Market knowledge of lease to Australia Post as anchor tenant in nearby development site – terms being
    • 10 Year Lease
    • Circa 32,500m²
    • $650 per m²
Commercial Real Estate Market Average TCI Difference TCI Result The Pros The Cons The Challenges The Reveal The Facts Swan Street Collection
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 Swan Street Collection
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

  • TCI sold the property in February 2020, with a due diligence period, together with 382 – 388 & 388 – 390 Swan Street for $59,000,000 – the sale did not proceed due to Covid
  • There was market knowledge of said sale and terms. During lockdown, multiples of agents began contacting the Vendor making offers and offering the site to multiple buyers. This created a mixed message to the market
  • The property is in a “L” shape with approximately 2,360m² fronting Swan Street and the remaining 748m² fronting a neighbouring site, with approved plans for an office development
  • As a stand alone sale, the potential of the property was greatly reduced, without cooperation from the neighbouring owner, who had the balance of the Swan Street frontage

THE CHALLENGES

  • The neighbouring owner did not want to sell their property separately or as an amalgamation with our client – nor would they participate in a Joint Venture agreement with out client
  • The neighbouring owner was willing to hold their property for much longer than our client
  • The only way to fully maximise the price, was to sell to the neighbour or to sell to another party, who would Joint Venture with the neighbour
  • As the neighbour was interested in purchasing this property, they could refuse to work with any other party, which in effect meant they could largely control who the Purchaser was
Commercial Real Estate Market Average TCI Difference TCI Result The Pros The Cons The Challenges The Reveal The Facts Swan Street Collection
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 Swan Street Collection
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 an extensive and six week long negotiation process, TCI sold the property to the neighbour, for $45,500,000 – which equated to $14,640 per m²
  • Market expectation was approximately $35,000,000
  • Final result being 30% above market expectations
 

the facts

market expectation

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sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street

sold 362-368 swan street