The growing trend of neighbours selling their properties collectively has reached the commercial market, with a group of South Sydney industrial owners joining forces to offload eight properties.
The seven owners received a combined $30 million for their office warehouses at an industrial estate in Alexandria after electing to sell their properties together to a developer, who is expected to develop the site with a residential component.
Selling agents Knight Frank estimate the units would have sold for just $10 million if they had been marketed individually.
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The strata warehouses at 163-173 McEvoy St varied in size from 313sqm to 588sqm, with on-site parking for 35 cars, and were owned by companies including Clark Corporation, Peaty Group and MRecht Accessories.
Knight Frank associate director of residential site sales, Adam Bodon, says the buyer will likely look to develop the site as a mixed-use space with a residential element.
“There are huge future growth prospects and an immediate upside waiting to be unlocked, including but not limited to a medium density mixed-use development,” Bodon says.
“The surrounding streets of Fountain and Lawrence streets have prospered in recent years, undergoing a radical gentrification which has seen them turn into the most desirable streets in South Sydney.”
Knight Frank associate director, South Sydney, Peta Antonio says the owners capitalised on Alexandria’s growing reputation as one of Sydney’s prime residential development areas.
“The property is a highly desirable end product, with strong recent sales in nearby developments within Alexandria,” Antonio says.
“Lawrence St is widely accepted as the premier residential street in the suburb, due to its close proximity to transport, parks and eateries all within a quiet, low density setting. The nearby developments on Fountain St have set the benchmark and opened up this small pocket of Alexandria to a whole new demographic of occupier and weekend visitor.”