Fortitude Valley is still developing commercial sites.
For example the Walker Corporation has just sold its proposed Ann Street tower.
Property fund manager EG has acquired the site in Brisbane’s Fortitude Valley, just 1km north of its CBD, for $27.72 million on a tight 4.7 per cent net yield.
The 3,582sq m site has development approval for two separate schemes — one residential, one commercial — with Lang Walker’s Walker Corporation scrapping the apartment scheme after the market turned in 2017.
Walker Corporation acquired the whole-block island site in 2015 for $22.2 million.
The developer later won approval for a 26-storey A-grade office tower comprising 44,000sq m of net lettable area and ground floor retail. Cox Architecture designed the scheme.
The $400 million green star-rated office tower would eventually house up to 5,000 workers, Walker Corporation said.
Located close to trendy James Street, EG’s latest asset joins a plethora of office development in the area including Consolidated Properties’ $250 million office scheme at 895 Ann Street and Pellegrino Group’s commercial building at 89 McLachlan Street.
The 801 Ann Street site is the eighth asset to join EG’s Yield Plus Infrastructure No. 2 fund, which has a $750 million real estate mandate.
EG has more than $2.4 billion worth of assets under management.
In 2018, the Sydney-based fund manager purchased a 17-storey Brisbane office tower from Peter Harburg’s portfolio and sold Fortitude Valley’s Optus Centre site for $23.5 million.
The property, which had approval for a controversial apartment scheme, was acquired by Scott Hutchinson of Hutchinson Builders for the 3,300-person capacity Fortitude Valley Music Hall.
A spokesperson for EG Funds said that the site had been initially acquired as a yield producing asset. The Volvo showroom and car service centre lease expires in 2024.
Fortitude Valley continues its vigorous expansion.
Consolidated Properties have lodged plans for a $250m Commercial Tower in Fortitude Valley.
The Consolidated Properties Group has announced plans to submit a development application for a $250 million office building at 895 Ann Street in Fortitude Valley.
Construction is expected to start in late 2019, with completion expected in early 2021, subject to Brisbane City Council approval.
The 15-level John Wardle Architects-designed tower will be located on the corner of Wandoo and Ann Streets.
There are currently no new commercial developments under construction in the Brisbane fringe area and there is a fairly limited expectation for the near future, so vacancy rates are generally predicted to fall.
Fortitude Valley is continuing its fast paced development and rejuvination.
For a long time Fortitude Valley has been a hub for entertainment and shopping.
The newest exciting development is the Howard Smith Wharves Project.
Howard Smith Wharves is a heritage-listed wharf on the Brisbane River at Boundary Street, Brisbane City and Fortitude Valley.
It was built from 1934 to 1940s.
The 3.5-hectare site is culturally and historically significant and was one of the last undeveloped riverfront locations in Brisbane.
Original construction of the wharves was undertaken in conjunction with the construction of the Story Bridge, one of the Forgan-Smith government’s principal employment-generating projects.
The area has recently had a major resurgence with Accor Unveiling a $100m Fantauzzo Hotel there.
The latest Art Series Hotels has announced its namesake artist, acclaimed Australian painter Vincent Fantauzzo, for its new $100m Brisbane flagship hotel at Howard Smith Wharves.
Fantauzzo will be at the design helm of the new hotel, responsible for furnishing the 166 guest rooms and lobby, located at the recently developed $200 million Howard Smith Wharf project.
The six-level SJB designed building, which features a natural rock and timber facade, is carved into the cliff under Brisbane’s Story Bridge, and signals the eighth Art Series hotel for Accor.
The new hotel will feature both original artworks and up to 500 reproductions of Fantauzzo’s most recognised works.
Fantauzzo uses contrasting elements of light and dark, shadows and colours to create depth enhancing the realism in his work to create narrative.
“I’m strongly passionate about accessibility to the arts, and what excites me most about the collaboration is that this hotel will give all guests the opportunity to connect with art, and immerse themselves in a really creative experience.”
The Fantauzzo is expected to launch in March
The redevelopment of the Howard Smith Wharves includes a new riverside parkland and commercial development spanning a 3.43 hectare site.
In 2013, Brisbane City Council made plans to revitalise the precinct as a “world-class” riverfront destination.
The precinct’s first stage is now open to the public.
New Development Opportunity For Sale within a Kilometre of Brisbane CBD
An interesting site less than a kilometre from Brisbane’s CBD has just become available.
It is 5,357 m2 and is located at 184 St Pauls Terrace, Fortitude Valley.
The site offers possible development potential of up to 20-storeys, 63,440sq m of gross floor area and three street frontages with great exposure to St Pauls Terrace.
The existing buildings have 2,851 m2 of gross floor area.
The site lies within 1 kilometre of the Brisbane CBD, Central Railway Station, Brunswick Street, China Town and the proposed $3 billion RNA Showground redevelopment.
About the Suburb.
Fortitude Valley is a vibrant suburb, with an eclectic mix of shops wit products from all over the world, trendy night clubs and eateries as well as a growing office presence; nationally recognised for its immediate proximity to the Brisbane CBD and an area of high focus for the Brisbane City Council’s planned growth for the inner Brisbane area.
Fortitude Valley’s key attributes are:
Strategic inner-city location, a natural extension of the Brisbane CBD
Unrivalled access to retail and lifestyle amenities, including The Brunswick Street Mall, Valley Metro, Gasworks Plaza, James Street retail and dining precinct & The Emporium complex
Vibrant and creative character & nightlife, known as Brisbane’s most established entertainment Precinct.
Continuous evolution and gentrification
Excellent proximity to key public transport systems including Fortitude Valley Train Station and multiple bus stops.
Continuous emergence of the precinct as a destination for major corporations.
The future of this area.
The site which has just become available for sale occupies a key position likely to benefit from plenty of proposed redevelopment of the immediate area in the forseeable future:
Over 8,000 apartments planned in Fortitude Valley and the CBD to be constructed over the next 5 years; including completion of the $600 million FV Flatiron and Valley project, further strengthening the surrounding population base
Major planned infrastructure upgrades including the redevelopment of Valley Metro mixed use centre, located directly above the Fortitude Valley Train Station
Growing workforce population of Fortitude Valley, expected to reach 32,000 by 2031, an increase of 57 per cent from the 2011 census figure
Fortitude Valley likely to benefit from key urban projects such as Howard Smith Wharves
Queens Wharf Brisbane and Cross River Rail, further adding to the appeal of inner city living and entertainment
State Government Department of Technology and Science established an innovation hub within a 5,600 square metres tenancy in the refurbished TCB Building in 2017 furthering their ability to house small to medium start up organisations in an innovative co-working space in the Brunswick Street Mall
David Jones boutique 4-storey store now open on James Street to cater for upmarket clientele.
The property at 184 St Pauls Terrace comprises two buildings including an administrative office building and a detached warehouse/stores building. Having been constructed in about the mid-1970s, both buildings are mainly of brick and concrete.
The main building provides for two levels of office with accommodation areas.
The ground floor has several offices and an auditorium, lecture/seminar rooms, storage areas, kitchen facilities including lunch room and staff and public toilets.
The first floor is occupied by offices with additional lunch and tea rooms, general reception area, many storage areas, and includes staff and public toilets.
The additional building is separate from the main building and is a multi-level.
The mid-level has a roller door that leads to a small loading dock area which encompases an open storage area.
There are also extra office areas located on this floor and the lower level with a stairway and male and female toilets are also provided.
There are eight under cover car parks with lock up storage areas. 38 car parks are provided on the roof level.
The site is NABERS exempt.
Gavin Roberts from QB Commercial notes that this is an opportunity for developers to move into this fast developing area.
[one_third_last]Is This the Most Exciting Vision for Urban Renewal in Australia?
by Adam Di Marco, founder and publisher of The Urban Developer
OK – here I go again, I’m going to put it out there loud and clear: the Fortitude Valley precinct on the northern fringe of Brisbane’s CBD is the most exciting urban renewal opportunity in Australia! Full stop.
Before everyone chops me down, let me start by breaking down the logic that underwrites this idea.
A lifetime of living, working, playing and building in the Valley
For the last 32 years, my life has been inextricably linked to the fortunes of Fortitude Valley.
When my grandparents first arrived in Australia in the 1950s from war-torn Italy, they were warmly welcomed into the arms of the Valley’s multicultural community.
When my parents were my age, they were actively involved in the glory days of the Valley’s live music scene.
My first property job was in Berwick Street working for a company called Mofo Group!
After a short stint overseas cut short by the global financial crisis, I was lucky enough to score a job with Leighton Properties working on a development that was to become “Mosaic” – a mixed-use project located at the crossroads of the emerging James Street precinct and the traditional Fortitude Valley heart.
When we launched The Urban Developer, we “couch-surfed” in my sister’s art studios on Brunswick Street, followed by a stint in a co-working hub called Little Tokyo Two, before jumping across the block to Constance Street.
We now call James Street home to our new HQ!
Beyond all of this, I have lived the past decade of my life in the Valley and spent far too many nights (and dollars!) enjoying the best the Valley nightlife has to offer.
So, why does this all matter?
Having lived, worked, played and been directly involved in the development of the Valley precinct for nearly two decades, it has become clear to me that this important part of Brisbane’s history is about to breakthrough to become a very important part of Brisbane’s future.
A history of constant change and an enthusiasm to rebel and renew
Enticed by the promise of free land grants, a group of Scottish immigrants arrived on the banks of the Brisbane river in 1849 aboard the SS Fortitude.
Denied land, they camped in today’s Victoria Park, Herston before moving on to settle a suburb, naming it after the ship on which the arrived.
For almost 170 years, the Valley has continued to rebel against authority in pursuit of constant renewal.
Today, in the shadow of towers that mark the most recent chapter of Fortitude Valley’s history, a renaissance is taking place and spreading from the top of the colourful Brunswick Street Mall to the laneways of James Street.
A Valley Vision that is designed and built from the ground up
Earlier this year, I was invited by the Valley Chamber of Commerce (VCC) to participate in an advisory panel that was charged with helping to establish a new Valley Vision.
While there is nothing new about a Valley Vision, what struck me was the approach.
Led by Alastair Leighton, cities director at AECOM, and Dai Gwynne-Jones, director at VCC, the renewed Valley Vision has taken a non-partisan approach that is more focused on enabling collaboration at all levels of government and private enterprise, rather than prescribing a particular approach.
The Valley Vision established five Guiding Principles that serve to steer practical outcomes:
1. Global Precinct
2. Distinctive Welcome
3. Dynamic Culture
4. Urban Comfort
5. Easy Connections
Beyond the Guiding Principles, the vision outlines five Foundations or catalyst precincts that are critical to the next generation of the precinct. These include:
1. The Valley Metro
2. Fortitude Valley Education Hub
3. Bridge Street Green Heart
4. Story Bridge Park Gateway
5. Centenary Park Gateway
The Valley Vision is certainly not a solution, but rather a strategic advocacy document that guides the future development of the precinct and shapes the future
The next chapter – a collaborative process shaped by ambitious leadership
As a homegrown local, it’s not necessarily in my interests to see the Fortitude Valley change.
But who cares about what I think? It’s changing anyway.
In fact, the rate of change is accelerating. From major residential developments, hotels, music venues, new restaurants and office developments, the Valley is well on its way.
What we need to implement now is a bold plan: a vision that rises above politics and delivers transformational change to ensure the Valley grows into a world-class precinct that is a defining part of “Brand Brisbane”.
With the spirit of the SS Fortitude, let’s get behind this first step and support bold thinking, new ideas, disruptive technologies, inclusive public spaces, high-quality public realm, day and night-time economies, loveable streets, a welcoming culture.
And most importantly, embrace the inevitable change that this place will ultimately embrace.