Investment group

Impact Investment Group sells 11-story building at 401 Collins Street for $70 million after WeWork exit

WeWork’s withdrawal from at least three of its facilities follows a long period of disruption for CBD coworking hubs, putting pressure on some to pay rent. Even before the pandemic disrupted normal operations, WeWork’s dramatic expansion had stalled three years ago as it addressed enterprise-level issues.

The coworking giant succeeded in a subsequent effort to go public late last year.

The 401 Collins Street deal was brokered by Daniel Wolman, Matt Stagg, Oliver Hay and Leon Ma of Colliers, along with Charter deal managers Keck Cramer, and follows a $24.5 million building overhaul in 2018.

“The tenancy profile and nature of the building offered extreme flexibility to the new owners, providing the rare opportunity to potentially lease or occupy 10 floors of fully refurbished prime office space on Collins Street,” said Mr. Wolman.

While Melbourne’s commercial market has yet to see the blockbuster deals completed in recent months in Sydney and Brisbane, there has been a steady trickle of mid-sized deals such as the $40 million sale of 411 Collins Street, which houses the headquarters of Chinese e-commerce giant Alibaba, 12 months ago.

Also in the neighborhood, Singaporean player HThree City Australia snapped up a downtown office tower at 446 Collins Street for $72,625,000 in September.