Redfern’s ‘Gracelands’ backpackers sells to local cafe owner
Gracelands, a bright blue landmark on bustling Cleveland St that had previously played shelter to rock stars, a mayor, and countless backpackers, has just sold for $3.6625 million.
Formerly known as Meath House, a grand mansion built in the mid 1800s that was the one-time home of long term Redfern Mayor Patrick Stanley, Gracelands was expected to fetch “in the high $3 millions” at its November 22 auction.
Before its more recent reincarnation as a backpacker hostel, the prominent city fringe property had reportedly been an unofficial S and M brothel, and even earlier than that was a low cost boarding house which lodged several “up and coming” Australian artists such as Nick Cave and Tex Perkins.
Commercial Insights: Subscribe to receive the latest news and updates
Selling agent Scot Robertson of agency TGC Sydney said Gracelands sold just after auction to local investor Peter George, owner of the nearby Little Evie cafe.
“Our property at 461 Cleveland St, including 24 Little Cleveland St, sold at a rate of $9810 a sq metre of internal area,” he says, adding that the estimated net yield was around 3.95% before acquisition costs.
The blue backpackers isn’t far from the CBD.
“Peter just liked the property with its landmark status and expansion potential for a further 230sqm of buildable area,” he says referring to the vacant land to the rear of the main terrace if it were to get council development approval.
Robertson says he was approached by a long list of buyers during the marketing period.
“Other buyers were looking at a mix of redevelopment options, student accommodation and expansion of the existing boarding house operation by a further 10 to 15 rooms. A couple of buyers were also considering running it for a while and then converting it back into a grand residence again, having in mind its huge land size,” he says.
One of the bedrooms at Gracelands.
“We had strong interest in the property, receiving over 90 inquiries and 10 requests for contracts with two bidders attending the auction. A number of the prospective buyers that didn’t turn up said they would buy it after it failed at auction, so it was satisfying to achieve a solid result for our client,” Robertson says.
The vendor was retired doctor Suzanne O’Connor who has run several backpacker premises around Sydney. She bought the grand terrace in 1996 for $725,000 – less than the price of a local two-bedroom apartment today.
The open living areas.
Robertson says while the vendor was sorry to see it go, she was happy that the purchaser saw the property’s potential.
“They will likely seek to restore it to its original glory as the grandest and ‘blue-ist’ terrace on Cleveland St,” he says.
This article from The Daily Telegraph originally appeared as “Landmark ‘Gracelands’ backpackers, formerly known as Meath House mansion, given new life”.
