Landmark properties offered in Geelong West and Ocean Grove provide opportunities to leverage their size and position for multi-storey residential developments.
The commercial sites have hit the market and attracted strong interest from developers and other groups.
A two-storey tenanted investment at 68 The Terrace, Ocean Grove, offers real development potential with a 13.5m height limit offering uninterrupted ocean and Barwon River views.
The property is expected to attract offers above $3m.
Darcy Jarman, Newtown agent Andrew Prowse said there are secure leases, with demolition clauses, for the long-term tenants, RT Edgar and Ocean Grove Cellars, generating more than $124,000 a year.
But Mr Prowse said the highest and best use of the 606sq m property was in a mixed use redevelopment capitalising on the commercial position with office and residential apartments on up to four levels.
“There is a lot of under-utilised land at the rear that can and will be eventually developed on and you are one of only 11 properties on the east side of the road that can go 13.5m, so you will get virtually uninterrupted views of the water,” Mr Prowse said.
“You may even have a level of office, but you will certainly keep a retail presence at grade, potentially an element of office given the lack of availability in that precinct and then using the views from the higher levels, three and four if you like, towards the water and the Barwon river where you will achieve some strong residential rates.”
Mr Prowse said there is a mix of interest, including local, Melbourne and interstate investors and developers.
“Those key commercial precincts on the Bellarine Peninsula are running at next to zero vacancy rates and I can’t see that changing any time soon given that level of demand from a residential perspective down there.”
Expressions of interest close June 1 at 3pm.