A Double Bay office developed by Greater Union six years ago – replacing the Vogue Theatre – has sold for $25.5 million.
The price is a record auction result for the leafy eastern suburb.
It also reflects a sub 3.9 per cent net passing yield.
The deal comes two months since Aussie Home Loan founder John Symond paid $21m – also a suburb auction watermark – for Piccadilly Court, diagonally adjacent, at 356 New South Head Rd.
Earlier this month Fridcorp and Piety Group spent c$180m on the nearby InterContintental, on 3670 sqm, at 33 Cross Street.
377 New South Head Road
Mr Solomons described 377-379 New South Head Road as “one of the best buildings in the bay” with possibly the most diverse cash flow offerings outside of the CBD (story continues below).
Over five floors, it contains 1529 sqm of lettable area; key occupiers are BeFit Training & Physio, Universal Health and Edge Offices.
The 588.1 sqm site has direct access to the Kiaora Lands shopping centre precinct – a joint venture between the Woollahra Municipal Council and Woolworths/Fabcot, also with a library and 400 car parks.
“This ticks every box for investors, owner occupiers, lenders and more in our market,” Mr Solomons said of 377 New South Head Rd.
“A new building with depreciation, outstanding position [and] multiple income stream from quality long term tenants,” he added.
Mr Whiteman said the area “has seen incredible growth in demand from investors, developers and owner-occupiers looking to capitalise on the shift in lifestyle throughout 2020”.
Construction of the office was completed in 2015.
More to come.