Price not cheap for for Sydney beach hostel

A Collaroy youth hostel that won best budget accommodation in the state is for sale as part of a large development site.

The Sydney Beachouse YHA won the award in 2000, less than two years after opening. The hostel has 65 rooms, a pool and is just metres from Collaroy Beach.

The 2025sqm site last traded in 1995 for $485,000.

Now, with neighbouring 1 Alexander St, the hostel is for sale and expected to fetch more than $10 million.

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CARE’s Aaron Arias, Toby Silk and Nicholas Heaton are marketing the consolidated blocks on behalf of a local investor. Together the block cover 2570sqm of land close to the beach.

The 1 Alexander St property is a three-level apartment block with five units and three stores including a cafe and physiotherapy.

“The northern beaches market is undersupplied for quality development sites with holding income,” Arias says.

In 2000, the hostel was awarded best budget accommodation by NSW Awards for Excellence in Tourism.

“They offer an opportunity to acquire a key site with strong rental income and promise of high development upside due to favourable planning controls.”

Silk says Collaroy has become a sought-after market, with house prices more than doubling since 2010.

“Given these properties have never been offered before and the size of the holding, we expect significant interest from developers seeking to establish a landmark, mixed-use development in the heart of the peninsula,” Silk says.

Heaton says the northern beaches have consistently experienced one of the highest clearance rates in the state.

“The lifestyle draw of the northern beaches is seeing the population rapidly increase, fuelling underlying demand,” he says.

The combined gross income of the two properties totals $610,200 per annum.

Expressions of interest close May 31.

This article from The Manly Daily was originally published “Collaroy youth hostel set to make way for up-market development“.