Braxton Capital will test Sydney’s fringe office market with a permit-approved development site in Surry Hills.
The listing comes days after the council approved the development application in the Sydney fringe.
The suburb had a tight sub-2 per cent vacancy rate prior to the pandemic. The development site expected to reach circa $7 million in the expressions of interest campaign.
Fringe markets have fared better than CBD counterparts with vacancy rates remaining below the national average in recent months.
However this listing is a fair way off the record-breaking fringe market transaction set last year after a four-storey Surry Hills office sold at a rate of $19,770 per square metre.
The approved commercial building at 479 South Dowling Street integrates a 1900s grand terrace with a modern building designed by William Smart of Smart Design Studio.
The development was approved on 6 October, 2020 by the City of Sydney, six months after the application was lodged.
Braxton Capital developer Andrew Donnelly the project creates a striking gateway into the creative precinct and delivers an exciting piece of architecture worthy of its prominent location.
“The design will establish this landmark building as the eastern gateway to Surry Hills by providing creative office space within two connected buildings that explore the dynamic between contemporary and traditional architecture,” Donnelly said.
Colliers International national director of investment sales Miron Solomons said location as well as low vacancy rate prove the area’s resilience in this unusual time.
“It’s been all eyes on the fringe this past few months and in particular around Surry Hills where we are witnessing close to $3 billion dollars on public and private infrastructure projects continue unabated,” Solomons said.
Colliers International associate director Matt Pontey said it is a landmark gateway site which they are confident will attract interest from developers and owner-occupiers.
“We don’t see many commercial development sites offered to market in Surry Hills with valuable approval and designs of this calibre,” Pontey said.
“It would make an amazing headquarters and it will be interesting to see who is going to stamp their brand on the signage and exposure the site offers.”
The fringe suburb has also attracted the likes of tech-giant Toga who is embarking on one of Sydney’s most sought-after projects with the redevelopment of Surry Hills shopping centre and former Bank of NSW.