A strategic stake in a prominent city strata building has been listed for sale, offering the chance to leverage interest in one of the CBD’s next potential “super sites”.
A group of owners have joined forces to market 28 suites at 109 Pitt Street, amounting to just over 26 per cent of the B-grade commercial building’s lettable area and 25.32 per cent of the voting rights.
With sales estimates as high as $80 million, the stake includes 16 owner-occupied suites and 12 tenanted offices.
CBRE’s Harry George, who is marketing the parcel along with Kenny Duncanson and Scott Gray Spencer, said it would be a key acquisition for any group seeking to amalgamate one of the city’s next major development sites under the City of Sydney’s draft Sydney planning strategy.
“The sale provides a strategic opportunity to acquire a blocking stake in the building, giving the new owner a seat at the table in a future super tower development site,” George said.
“The strata lots could potentially form part of a longer-term, 3,200sqm development site stretching from Angel Place to Hunter Street, which has been identified as one of the CBD’s next potential super sites.”
With tenants demanding larger floorplates, George said greater site areas were considered critical for the success of core Sydney CBD developments, with several “super towers” already being developed in the immediate area – including Circular Quay Tower, Quay Quarter Tower and 210 & 220 George Street.
Duncanson said the sale provided an opportunity to capitalise on the underlying strength in the Sydney office market by acquiring strata lots with a combined lettable area of 3,123 square metres.
“Historically low interest rates, low supply growth over the past decade and a significant weight of capital seeking to invest in Sydney is driving interest in CBD investment opportunities,” Duncanson said.
“In the case of 109 Pitt Street, the building is situated in the city’s financial core and is surrounded by premium office towers. Refurbished in 2018, the property benefits from its proximity to Pitt Street Mall, the new light rail and from a through site link to Hunter Connection, which provides off street connectivity to Wynyard Station.”
Also known as Randstad House and Hunter Arcade, the building was constructed in 1963 and offers 20-storeys of office accommodation and ground level retail on a 1,329sq m site.
Expressions of interest close Thursday, February 27 with the 16 owner-occupied suites being offered for sale on leaseback arrangements.