Cremorne deal defies downturn
A deal between occupiers this week points to Commercial 2 zoned office values in uber-trendy Cremorne holding out against a downturn.
The two level warehouse conversion at 131-135 Dover Street collected $4.35 million from a Sydney based PR firm – a week after the close of an expressions of interest campaign.
The property previously traded in August, 2020 – as the country was exiting lockdown, buyer sentiment was higher and interest rates were lower – for $4.18m.
Before that, the 394 square metre site with side and rear laneway access was permitted for a new build – with eight floors.
Cushman & Wakefield’s Raphael Favas, George Davies and Anthony Kirwan were the agents.
No go for high rise plan
The incoming Dover St owner won’t proceed with the permitted project.
The deal comes 13 months since a neighbouring warehouse converted office on less than 600 sqm, 112-114 Cubitt St, traded for $7m – a low 1.68pc yield, reflecting its development upside (story continues below).
In Richmond, which shares the same postcode as Cremorne, high profile developers including Fortis and Larry Kestelman have this year snared sites – for office projects.
Plans for a significant office and hotel project affecting the City Kia dealership at 198 Burnley St, in that suburb, also advanced this month.
“This is the sixth successful sale our team has concluded in Cremorne this year,” Mr Favas said of Dover St, which was marketed as a “quintessential” example of a local warehouse conversion.
Three unconditional offers came in after the EOI closed, he added.
There were two rounds of bidding.
Cremorne – amongst the city’s priciest suburbs to buy or rent office product – is four kilometres east of town.
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