Castlerock sells Wollongong office for $50.4 million

An artist’s impression showing the building with the extra permitted commercial space.

A Wollongong trophy asset has sold for $50.4 million making it the precinct’s priciest office deal.

Melbourne-based Castlerock was the vendor.

It paid $43.9 million for 90 Crown Street in September, 2016 – also believed to have been a record outlay for a commercial property.

The coastal town about 90 kilometres south of Sydney’s CBD.

The Wollongong asset at 90 Crown Street

The 90 Crown St asset previously traded in 2005 for $30.7m.

On a 3755 square metre corner site, the seven-level office contains 9172 sqm of lettable area and 160-bay basement car park.

Almost 20 per cent of the building is configured with retail space.

More than three quarters of the annual rental income is derived from government occupants including the Department of Human Services and Roads and Maritime Services.

The property was offered permit-ready for a 2036 sqm extension.

It is exchanging on a passing yield of 7.75 per cent.

Each square metre of building area has been valued at $5493.

Knight Frank’s Ben Mostyn, Tyler Talbot, Dominic Ong and James Mulcar with MMJ’s Geoff Jones and Travis Machan represented Castlerock.

“The ability to add around 1600 sqm of office space and 440 sqm of retail space represents a considerable value-add opportunity to increase the underlying income of the property, expand the tenant offering and reinforce the property’s position as Wollongong’s undisputed trophy asset,” Mr Machan told the Illawarra Mercury in this item when 90 Crown Street was listed for sale in October.

Mr Mostyn said the sale price of $50.4m makes the deal Wollongong’s largest to date for an office.

The agents closed an expressions of interest campaign on November 22.

An aerial image of 90 Crown Street, Wollongong.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco