Investors and developers pick off Mona Vale properties

Investors are quietly buying key commercial sites in a northern beaches suburb looking forward to growth once the suburb’s centre is rezoned.

Mona Vale at the northern end of the peninsula has been identified as a strategic centre by the NSW government and as the urban heart of the north by Northern Beaches Council.

Investors and tenants have been making big and prompt decisions in Mona Vale and agents predict growth once the local government goes ahead with its planned major masterplan, which could be years away.

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Northern Beaches Council in its Towards 2040 Draft Local Strategic Planning Statement said Mona Vale will become a “contemporary, urban heart of the north” with the civic centre transformed into an arts centre and the creation of a “civic heart” in the village park.

The Officeworks site has sold for $14.75 million on Tuesday December 10.

This week the Officeworks-tenanted site in Mona Vale was the biggest sale of the day at Burgess Rawson’s final auction of the year. The property sold for $14.75 million under the hammer, returning a 5.32% yield.

Burgess Rawson’s director Darren Beehag says the Officeworks site, on Barrenjoey Rd, was the standout sale of the day.

“It sold under strong competition due to its 3667sqm land size and these days, it’s not easy to secure sites of this scale on Sydney’s prized Northern Beaches. When you couple the substantial parcel of land with the renewed five-year lease to Wesfarmers, you have yourself a fantastic investment,” he says.

Three blocks of land almost opposite Woolworths are under contract.

In addition the ‘under contract’ sign has gone up on three parcels of land opposite Mona Vale Woolworths fronting Park St and Pittwater Rd. Robbie Delmege has been marketing the 2400sqm of land for some time and his website states it has numerous development options.

Rob Henderson, of Hardy’s 1, says Mona Vale is losing its former industrial premises, seeing more retails and gyms opening up and the second half of the year has seen strong sales and good commercial activity.

“We had three tenants sign up for The Vale Estate, a 6500sqm building, and they leased them within two months,” he says.

An aerial view of the land now labelled under contract.

Michael Burgio, of Novak Properties, has received 100 inquiries for the iconic Tex Mex site in Mona Vale which has run as a Mexican restaurant for 37 years.

“Investors want a strong tenant profile while developers are eager to get good development sites,” he says.

Tex Mex, on Barrenjoey Rd, is on 350sqm of land, and consists of both the restaurant premises and an upstairs apartment. The tenant is on a five year lease with a five year option.

The iconic site, Tex Mex, now for sale for offers of more than $2.39 million.

Burgio says the net yield is currently 6.5% going up to 7% next year. The asking price for the property is offers over $2.39 million.

Mona Vale is one of the main employment centres on the northern beaches and the immediate area has more than 3000 registered business. Interestingly there is a strong concentration of marine industries including surfboard making and boat building and sail making in Mona Vale.

Inside Tex Mex, the building is for sale and includes an upstairs apartment.

A new skate board was recently opened in Mona Vale and work in underway on a $6.6 million new Surf Life Saving Club on Mona Vale Beach. The new club will have a cafe on the ground floor, gym, canteen and a restaurant and should be complete by mid-2020.

In addition the B-Line turn up and go bus service starts in Mona Vale running all day to and from the Sydney CBD.

This article from the Manly Daily originally appeared as “Investors and developers are quietly buying in Mona Vale”.