An extraordinary realisation opportunity has become available in the heart of Dandenong’s CBD. Formerly operated as City Edge apartments, the Exodus Hotel, One building with multiple options says selling agent, Dominic Gibson, Director of Melbourne Acquisitions.

This standalone, 8 level freehold property contains 42 apartments, 1st floor commercial office space, ground floor retail premises plus 24 car spaces is being offered with vacant possession.

Currently operated as short stay accommodation, the apartments comprise 4 x 3 bedroom, 12 x 2 bedroom, 6 x 1 bedroom, and 20 x studios that could also appeal to long term residential rentals.

The full commercial office floor can be leased independent of the Short Stay business or makes an ideal space for further expansion as approval for an additional 5 apartments has been received.

A vast frontage (in excess of 20m) of the property to Thomas Street allows significant exposure for businesses looking to take advantage in this central location. It is anticipated that the property will transact interest above $14M.

The property sale is being handled by Dom Gibson and Stefan Deffert from Melbourne Acquisitions.

Mr Deffert says, ‘It’s incredibly rare to find a centrally located blank canvas of such built form, with so many potential uses, ready for a new owner to re-enforce the current operation or repurpose to alternative accommodation possibilities’.

The worsening housing supply crisis has buildings such as 229 Thomas Street being keenly sought, particularly given many are selling below replacement value given the surge in construction costs.

Mr Gibson says, ‘Dandenong is entering a significant growth phase and attracting strong investment’. Mr Gibson commented recent nearby transactions that reflect this include:

• Government Service Office 165-169 Thomas St $165m
• Dandenong Plaza $145m; and
• Former RSL village 60 Clow St $11.6m

Additionally, from 2017 to the start of 2022, the market for serviced apartments declined an average 7.8 per cent per year according to data from global analysts IBISWorld. Last year however the tide turned when Australia’s serviced apartment market grew 12.1 per cent to hit $1 billion in total revenue. The milestone marked the start of a major growth phase, IBISWorld’s most recent report into the country’s serviced apartments industry forecasting rapid expansion in the coming five years fuelled by continued growth in domestic and international tourism, added Mr Gibson.

229 Thomas Street Dandenong, a developers realisation for sale by expressions of interest closing 4pm August 3rd 2023.

To request a copy of the Information Memorandum please contact one of the marketing agents via the contact details below.