This 14-unit apartment block in Malvern is generating $200k a year, and could be returning $300k once fully leased and refurbished.
An entire block of 14 units in a prestige Melbourne postcode has hit the market with a sub-$4m price tag.
The complex offers buyers the chance to snap up a blue-chip investment for the cost of two houses.
The self-contained one-bedroom units are all on a single title and deliver strong rental potential with scope to add value.
Located at 22 Finlayson St, the solid-brick building is returning about $200,000 a year across 11 current leases, with rental potential soaring to $291,200 once fully refurbished and leased.
The complex has $3.4m-$3.74m price hopes.
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Gross Waddell ICR director Danny Clark said interest from both local and interstate buyers had surged since the listing launched last week, including investors, developers and syndicates eyeing rental uplift or a future strata selldown.
“It ticks all the boxes, income, bones, and value-add potential,” Mr Clark said.
“Buyers aren’t just looking for passive, set-and-forget assets anymore.
“They want something they can improve, where they can unlock more value.”
Investors are eyeing the value-add upside of this 14-apartment Malvern block.
The 810sq m site sits in a leafy, tightly held pocket near Glenferrie Rd, High St and Wattletree Rd.
Each apartment is separately metered, with a mix of updated and original interiors, plus off-street parking.
Photos reveal some units already feature modern kitchens and parquetry floors, while others offer dated bathrooms and older fittings ripe for refurbishment.
Mr Clark said light cosmetic upgrades, around $20,000 per unit, could significantly boost rental returns without the risk of overcapitalising.
“You’re not gutting them. You’re doing paint, flooring, kitchens,” he said.
“We recently sold another block for the same owners where one-bedders were renting for $415 a week. These are averaging closer to $32.”
The entire complex at 22 Finlayson St, Malvern is up for grabs, complete with off-street parking, leafy surrounds and huge rental upside.
The complex is being sold by a long-time Melbourne family who developed and retained multiple blocks of flats across the city in the 1960s to 1980s.
Gross Waddell ICR sold their 1218 Dandenong Rd, Murrumbeena block last month for $5m, with strong interest from Sydney and Brisbane investors, including one unconditional offer made sight unseen.
“From a national perspective, Melbourne’s looking like exceptional value right now,” Mr Clark said.
“Interstate buyers are recognising the opportunity. But we’re also seeing local confidence return. The sentiment’s definitely shifting.”
Malvern’s $2.5m median house price positions the complex at just under $270,000 per apartment, and with a 5.5 per cent yield based on current rent, not including potential uplift.
The one-bedroom apartments offer solid brick bones with scope to update kitchens, bathrooms and flooring for stronger rental yields.
Mr Clark said buyers are being drawn to the property’s proximity to Malvern and Caulfield train stations, multiple tram routes, and elite schools including Lauriston Girls’ School, Caulfield Grammar, and Monash University Caulfield.
“The location’s bulletproof, and with Metro Tunnel services coming soon, that connectivity is only going to improve,” he said.
“It’s income now, growth tomorrow.”
The Gross Waddell ICR agent said most buyers viewed the complex as a refurb-and-hold investment rather than a development site, but could allow scope for a future strata subdivision or redevelopment, subject to council approval.
“You’ve got building value, land value, and income value, that trifecta appeals to smart investors,” Mr Clark said.
The property will go to auction at 12pm Thursday August 28.
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