Stadia Capital is paying over $80 million for North Sydney’s seven level Simsmetal House.
The heritage protected Harry Seidler designed complex at 41 McLaren Street came permit-ready for a six storey extension.
Four years ago, it was the subject of a 41 floor residential planning application – a proposal knocked back by the North Sydney Council and later, the Independent Planning Commission.
Stadia could try again for a taller extension – it would need to not overshadow solar panels earmarked for a nearby public space mooted as part of the Ward Street Precinct masterplan.
Instead, it will proceed with the permitted plan – adding commercial product it expects to be classified as prime grade.
The sale comes a week since Keppel, via Lendlease, paid $327.7m for a 10 storey, 14,961 sqm office under construction at 2-4 Blue St and 1-5 William St, North Sydney.
In August, Cbus and Galileo outlaid $150m for a 4000 sqm site – an amalgamation of seven blocks – covering 173-179 Walker St and 11-17 Hampden St, in the suburb.
That vendor, Avendor, offered it with approved plans for a 30 level apartment building.
Elsewhere in the area recently, Billbergia started marketing a 50 storey mixed use complex at 88 Walker St – set to contain about 11,000 sqm of offices.
Not far away, Stockland in January mooted a 53 level, 64,000 sqm commercial building and 48 level hotel between 110-118 Walker St.
Another 42,835 sqm of workplaces is earmarked at 100 Walker St, while at 107 Mount St, a 33,000 sqm office is planned.
Prime offices planned
Opposite Victoria Cross station, 41 McLaren Street occupies a 2359 square metre B4 zoned block (story continues below).
It contains 8450 square metres of area, part leased to Volt Bank.
There are also 91 car parks.
“Its such a prime site and a significant sale for an ever-growing and improving part of North Sydney,” Mr Chomley said of the property.
“The opportunity exists to undertake a major refurbishment…as well as potential for further development,” he added.
“North Sydney is a dynamic precinct that is currently in the midst of the biggest infrastructure and development boom in its history,” according to the executive.
“With significant uplift in investor and occupier demand, [the suburb] has almost become an extension of the CBD and is set to continue to flourish.
“The property is in the middle of the North Sydney Council’s Ward Street Precinct Masterplan area, which will provide extensive parking, new office developments and substantial plaza areas, all situated between the two entrances to the Sydney metro at Victoria Cross”.
Lendlease has earmarked a 42 level, 56,000 sqm commercial building on airspace over the rail development.
Mr Walker said Colliers is also assisting Stadia with leasing the proposed prime grade offices.
The McLaren St property featured in a series of 1970s photos taken by modernist local photographer Max Dupain.
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