Grace Bros store turned hotel changes hands
A hotel built into a c1937 Grace Bros store opposite Broadway Shopping Centre in Sydney’s inner west has sold.
A local private investor bought the Breakfree on Broadway in Glebe, on a short settlement.
The vendor was Sachin Sabharwal, a former JP Morgan analyst and founder of micro-stay booking platform TimeFlyz.
The three level building was offered with a 10 year lease to Celestial Capital with Accor operating it as a BreakFree under franchise.
The $19 million sale price reflects a 7.1 per cent net passing yield.
The deal comes two years since realestatesource.com.au reported build to rent developer Apt.Residential bought a much larger ex-Grace Bros warehouse on the Broadway in Ultimo.
It is also five months since we reported the University of Melbourne bought a historic Myer warehouse to repurpose and occupy.
BreakFree on Broadway
On 828 square metres zoned E1 Local Centre at 247-253 Broadway, opposite Victoria Park, the Glebe asset was penned by Herbert Dennis for Grimley Ltd according to City of Sydney archives.
Mr Sabharwal repositioned what was a Ryals Hotel under Accor’s BreakFree brand in 2023 (continues below).
With 51 rooms and 48 keys, the hospitality component is unrenovated. There are also three retail tenancies.
The 680 sqm basement, which includes six car parks, is also permit-ready for an 86-pod capsule hotel.
The rooftop could also be activated.
Colliers’ Karen Wales, Steam Leung and Harry Mitchell with Savills’ Harry George and Andy Hu launched the sales campaign in March.
“The campaign generated strong interest from a broad buyer pool, attracting over 150 verified enquiries and ultimately resulting in a short settlement outcome with an established local investor,” according to the executives.
“Positioned in the heart of Broadway, a key inner-city precinct, the asset benefits from significant frontage, strong foot traffic and proximity to demand drivers including the Sydney CBD, universities and major transport links,” they said.
“The asset is underpinned by secure long-term income, diversified revenue streams and clear future repositioning or development pathways,” they added.
The address is near several student accommodation complexes, within the city’s multi-billion dollar Tech Central innovation precinct.
More to come.
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