Former Dakota site 123 – 127 Maroondah Highway Ringwood for sale

It used to be home to one of the most popular nightclubs in the outer east, now the revamped state-of-the-art building has hit the market.

123 – 127 Maroondah Highway Ringwood, the former site of Dakota nightclub, is for sale.

An entertainment complex at the former site of a popular nightspot in Melbourne’s eastern suburb has hit the market.

JLL – Hotels & Hospitality Group has listed the fully tenanted site at 123 – 127 Maroondah Highway for sale via expressions of interest for the former home of Dakota nightclub, with price hopes of more than $9.5m.

Described as a landmark hospitality and retail investment, JLL – Hotels & Hospitality Group are selling the freehold interest, with long-term successful tenants in place across the new building.

The Dakota nightclub was destroyed in a suspicious fire in May 2016, with a new entertainment venue, including The Bungalow Beer Garden, Baby nightclub and Hyde Rooftop, opening in a new three-storey building in 2021.

There are lease terms with five years remaining plus two seven-year options, with a combined income of circa $493,580 p.a.

“Newly constructed in 2020, the asset underwent an intensive design process to ensure the building is an architectural landmark for Ringwood,” the listing said.

“The building comprises three levels of state-of-the-art infrastructure including a beer garden terrace and spacious rooftop function area with a private outdoor terrace.”

The new building at 123 – 127 Maroondah Highway Ringwood.

It includes a beer garden terrace and rooftop function area.

JLL – Hotels & Hospitality Group senior vice president Will Connolly said the asset came to market last Thursday and since then there had been a healthy stream of inquiries come through.

“There is little to no capital expenditure an investor would have to put into the asset upon acquisition,” Mr Connolly said.

“The building itself is in pristine condition, obviously having been rebuilt only a few years ago, nothing has been left untouched in terms of the owners’ rebuild and repurpose of the property.”

He said early interest in the asset had been circa $9.5m.

“But we are hoping to exceed those expectations as we draw to the end of that (EOI) campaign.”

Mr Connolly said the current owners wanted to take advantage of the work that had been put into the property and were looking to other investments into the future.

Expressions of interest will close on March 2.