’Catalyst for change’ as $1m a year block goes up for sale
One of Double Bay’s largest commercial buildings with an annual income approaching $1m is set for October 15 auction.
Currently home to BeFit gym; serviced office provider @workspaces; and Universal Health among others, the modern five-level building at 377-383 New South Head Rd has a land area of 588sqm and a lettable area of 1529 sqm.
The property is being marketed by Miron Solomons and Matt Pontey of Colliers, with Grant Whiteman of Ray White Commercial Eastern Suburbs, on behalf of receivers KordaMentha.
They’re not citing a price guide, though the most recent comparable sale was ROMA Arcade, which sold at the start of the year for $20.5m to GWS Giants deputy chairman Adrian Fonseca.
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The Colliers team sold the BeFit building at auction for $25.5m in 2021.
The sizeable commercial asset boasts an impressive frontage to New South Head Road and
provides a key pedestrian link through to Kiaora Lane.
With a net annual rental of circa $930,000, 377-383 New South Head Road is positioned in the centre of one of Sydney’s most dynamic and prestigious markets.
The agents say the redevelopment of ‘Kiaora Lands’ by Woollahra Council and Woolworths in particular has been a catalyst for change on the southern side of Double Bay, with pedestrian traffic gravitating to Woolworths, Dan Murphy’s, Woollahra Library and numerous cafes and restaurants.
Mr Solomons said: “377-383 New South Head Rd represents a rare opportunity to secure a freehold commercial building in the heart of Double Bay.
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“The property’s prime location, coupled with its diversified income stream, makes it an attractive proposition for investors looking for both security and growth and the flexible tenancy agreement provides opportunity for owner occupiers, looking for a new home in Double Bay’s most desirable address,” Mr Solomons said.
Mr Pontey said properties such as this were in high demand.
“The resilience of Double Bay’s commercial market, combined with the stabilisation of interest rates, has boosted investor confidence and increased activity,” Mr Pontey said.
“The substantial frontage on New South Head Rd ensures excellent exposure, while the site’s
favourable zoning opens up exciting possibilities, adding long-term value to the investment.”
Mr Whiteman said Double Bay continued to be a prime destination for both consumers and investors.
“This property is perfectly positioned to capitalise on the ongoing demand for premium commercial spaces in vibrant, affluent neighbourhoods,” Mr Whiteman said.
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