A warehouse converted Surry Hills office has traded for $24 million – a suburb record for a commercial property auction.
The price for 1 Butt Street, at the south west corner of Clisdell, reflects an initial 4.23 per cent yield.
For decades until 2009 a printing factory, it contains 1349 square metres of recently refurbished space over two floors – all of which is leased to Fin Design until 2025.
The 658 sqm site is zoned B4 Mixed-Use allowing for a taller building.
In May we reported a Double Bay office – recently built by Greater Union on a 588 sqm block which previously accommodated the Vogue Theatre – sold for $25.5m, also setting a suburb auction record.
Value compared to Sydney CBD: agent
Surry Hills office vacancy rate is 8.5pc, compared to 13.2pc for the Sydney CBD, according to JLL Research.
“This was a fantastic investment opportunity to own a significant landholding in…one of Sydney’s tightest-held high conviction growth precincts,” JLL’s James Aroney, who marketed 1 Butt St with Mitch Noonan and IB Property’s Shane Blackett said (story continues below).
“Surry Hills presents a highly compelling value proposition relative to the Sydney CBD Core, both from a capital value and rent perspective, and that’s becoming increasingly sought after,” he added.
Late last year we reported Real IS outlaid $97m – a suburb record price – for Surry Hills House and neighbouring 1 Lacey St.
Eleven months ago, Johnstone’s Buildings, at 252-256 Cleveland St, leased to Afterpay, traded for $12.3m.
In Elizabeth St, meanwhile, neighbouring low rise buildings including a former backpackers, sold to an offshore investor for $33m.
On 900 sqm, that site has significant development upside, recently approved for a 10 storey apartment complex or hotel.
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