A heritage-listed North Sydney development site has hit the market for the first time in two decades, with price expectations set to eclipse $80 million.
The seven-storey Harry Seidler-designed office building on a 2,359sq m site at 41 McLaren Street benefits from demolition clauses, and has the potential to be reimagined as a large-scale development.
The building was first thrust into the spotlight after it was was pictured by the Australian modernist photographer, Max Dupain, in a series images in the 1970s.
It sits directly opposite Victoria Cross Metro Station’s northern entrance on the corner of Miller and McLaren Streets and in its current format offers 8,400sq m of office space above basement parking for 91 cars.
In March, developer Erolcene submitted plans for a 41-storey tower, but found plans dashed by North Sydney council after receiving nine submissions raising concerns around the proposal.
Initial plans featured commercial offices within the seven-storey podium of the building, while 200 residential apartments were planned across 37 residential storeys. Erolcene has since submitted a rezoning review request to NSW Planning.
Colliers International’s Jon Chomley, Tom O’Neill and Sophie Tieman will market the property via an expressions-of-interest campaign.
“This is North Sydney’s most iconic redevelopment site,” O’Neill said.
“After having received several compelling offers from developers over recent years, the owners have decided to put the property to market, to take advantage of the scarcity of available sites.
“The building is strategically positioned for refurbishment or additional floors, and provides significant value uplift, via a planning proposal, for a new mixed-use tower atop the existing building to maximise the site’s height and harbour views.”
The property also benefits from inclusion within the Ward Street Master Precinct bound by McLaren Street, Walker Street, Berry Street and Miller Street.
The 3.2-hectare masterplan is set to deliver much-needed public domain and amenity improvements to North Sydney CBD, whilst encouraging high-rise mixed-use development through increased potential height limits.
North Sydney has undergone a rapid transformation in recent years from a subdued commercial centre to a lively CBD with state-of-the-art skyscrapers and transport hubs.
Newly-established major commercial development includes Winten’s recently-completed 1 Denison office tower, Dexus’ tower next door at 100 Mount Street and the $1.2 billion Victoria Cross over-station development, scheduled for completion in 2024.
Fund manager Investa, with joint venture partner Oxford Properties Group, also has plans in front of council for a $500 million commercial tower between 105 to 151 Miller Street.
Developers have been quick to move on sites in the area with commercial or residential development potential.
In July, Colliers sold 18 strata lots on a corner block at 45 McLaren Street in North Sydney as one site in a put and call option to developer Podia for $55 million, which now has plans to build a larger mixed-use development.
American asset manager Nuveen recently listed a half-interest in 101 Miller Street and Greenwood Plaza, with a value of about $500 million, through Knight Frank and Colliers International.
Meanwhile, an office tower at 99 Walker Street is also being offered via Knight Frank and JLL, with pricing said to be about $312 million.