Source: Green Street News
Author: Nelson Yap
Date: 11 May 2026
Dare Property switched plans for a hotel to residential apartments to capitalise on the demand for housing supply
- WHAT: Dare has launched first Melbourne apartment project, backed by financier Zagga
- WHY: Melbourne has strong residential fundamentals and population growth
- WHAT NEXT: Construction is underway
Developer Danny Avidan’s Dare Property Group has secured funding from Zagga for its first Melbourne residential project, Green Street News can reveal.
Construction is underway on the 17-unit Saint David at 33 St David Street in the trendy Fitzroy neighbourhood. Apartment prices will start around $1.3m, with the project’s end value pegged at $40m.
The property was designed by Cera Stribley and Fiona Lynch Studio, and Samssons is the builder.
Avidan told Green Street News that while Dare had originally slated the site for a hotel development, the Sydney-based developer decided to go with a residential property due to better return prospects.
“We actually fell onto it because originally, we had another site on the corner,” he said. “It was going to be a hotel, and then we wanted a bigger scale, so we bought this site, too” to support the scale.
However, the company learned through the planning process that hotels don’t make money for developers – “at least not the first 10 years” – but that the feasibility stacked up for apartments. There is pent-up demand for housing because not many projects are getting off the ground, he noted.
As a Sydneysider, Avidan doesn’t share the “anywhere, but Melbourne” view. Dare previously delivered a five-level, 2,000 sq m office development, Zero Gipps, in nearby in Collingwood.
“Melbourne has a lot to offer. Sure there are some issues, but Melbourne is a great city. … In the medium to long term, Melbourne offers strong opportunities for growth,” he said.
In terms of financing, Avidan said the decision to go with Zagga was due to certainty.
“Of course we talked to the banks, but nonbank lenders offer faster decision-making and greater flexibility,” Avidan said. “I know banks now are becoming a lot more approachable and active. But they still take two to three months to make a decision. A nonbank lender makes a decision in two to three weeks.”
Tom Cranfield, Executive Director at Zagga, said private credit can act sooner to give developers confidence to proceed.
“Within the capital stack, we work with them directly through the project by being further up the risk curve,” he said. “We can get a project from A to B, and then the bank will take it at some point near the end of the cycle when they’re a stabilised asset.”
Cranfield said Zagga has been involved with some of Dare’s projects in Sydney.
“Saint David is no different. It’s a great infill project in one of the best suburbs in Melbourne, close to employment corridors and transport infrastructure. Our goal is to back these kinds of projects, not once or twice but 20 times,” Cranfield said.
