In a first for the Parramatta CBD, an existing office building will be converted to apartments after being sold for $24 million.
Dyldam Developments has swooped on the 460 Church Street office tower in a deal negotiated by CBRE's Western Sydney Managing Director Frank Oliveri.
With all of the existing office leases in the building either short term or subject to demolition clauses, Mr Oliveri said the property has been marketed as an ideal conversion opportunity.
"Parramatta is being rapidly transformed, with the periphery of the CBD shifting from being predominantly a commercial precinct to one that is now dominated by residential developments," Mr Oliveri said.
"This has been underpinned by the strong performance of the Parramatta apartment market, with new CBD projects setting new benchmarks in regard to both pricing and short selling periods."New developments in the northern precinct of Parramatta include Meriton's 330 Church Street, the Lidis redevelopment of the Lennox Bridge Car Park, 333 Church Street and Holdmark's 463 Church Street project.
In the case of 460 Church Street, concept plans have been developed to convert the seven-storey, 7,500sqm building to 120+ apartments.
The proposed project has been designed to capitalise on the building's elevated main road position, which affords commanding views over the Parramatta CBD skyline and surrounding suburbs.
It is the latest undertaking for Dyldam, a group that has emerged as Western Sydney's most active developer.
Mr Oliveri said the existing leases in the Church Street building would provide a strong holding income for Dyldam while planning approvals were sought.
It is the first example of a Parramatta office conversion but it is unlikely to be the last according to Mr Oliveri. He expects developers to increasingly target opportunities in both Parramatta and other suburban CBDs such as Strathfield, where CBRE is presently marketing 2 Raw Square - an office building that would suit conversion to 70+ apartments subject to the relevant approvals.