Another office tower is likely to succumb to the inexorable march of buildings being converted to upmarket apartments on Melbourne's grandest boulevard St Kilda Road.
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Number 457 St Kilda Road has hit the market through Tesca Carson's Michael Taylor and CBRE's Josh Rutman with price expectations in excess of $50 million.
The eight-level commercial tower in a prime location overlooking Fawkner Gardens is being offered with vacant possession after majority tenant Serviceworks, a subsidiary of stock transfer company Computershare, moved out last month.
The empty tower is likely to attract residential developers who have established a track record of snapping up prime St Kilda Road sites.
Further along the boulevard, Boutique real estate financier Qualitas last year acquired the Fawkner Centre at 499 St Kilda Road with plans to turn it into a luxury $300 million apartment targeted at downsizing empty nesters.
On the other side of the road at No. 412, Malaysian firm UEM Sunrise last year lodged plans to convert the former police complex into 182 high-end apartments.
The streets surrounding St Kilda Road, particularly Queens Road renowned for its views over Albert Park, have also been in the middle of a residential development storm.
The descendants of Richmond clothing manufacturer Slade Knitwear are the latest to apply to build a high-rise tower on a vacant block at 31 Queens Road overlooking the golf course opposite.
The Slade family established a knitting mill in the 1940s, purchasing a factory in Richmond's Dover Street on which they erected a large, now classified, neon sign.
The development application submitted for Queens Road includes 155 dwellings in a tower up to 15 storeys.
The 3000 square metre building at 457 St Kilda Road is owned by Evelyn Danos, the wealthy heir and daughter of duty-free retailing pioneer and Richmond Football Club benefactor David Mandie.
For the past two years Ms Danos has been embroiled in a lengthy and bitter legal stoush over Mr Mandie's estate, initially with her brothers Ian and Stephen and then subsequently with six of Mr Mandie's grandchildren and daughters-in-law.
Title documents show the building last transacted for $23.25 million in 2003 when it was sold by former life insurance business Norwich Union Life Australia, since merged with MLC.
About 90,000 square metres of office space is expected to be withdrawn from Melbourne's office market this year, largely the result of buildings being converted into residences.
A similar amount of space was withdrawn the year before, according to estimates by Knight Frank.
Knight Frank's head of office leasing Hamish Sutherland said redevelopment activity in St Kilda Road and nearby Southbank was the primary cause.
"A further 211,519 square metres of office space across the CBD, St Kilda Road, Southbank and suburban office markets has been identified for potential conversion or redevelopment," he said.
