Amid ongoing demand for Sydney fringe office investments, a converted warehouse in Darlinghurst has changed hands for $92.75 million.
Melbourne-based private investor Marks Henderson expanded its Sydney portfolio, snapping up the 19A Boundary Street asset from fund manager Haben Property Group.
The asset last transacted for $63.5 million when Haben purchased it in 2017.
The fully-leased building, home to 53 tenants, transacted on an initial 4.7 per cent yield. Tenants include creative agency Collider and celebrity chef Donna Hay.
“The 19A Boundary Street acquisition continues our theme of buying character buildings which are well positioned and appeal to creative and edgy tenants in the technology, advertising, media and information sectors,” Marks Henderson director Chris Marks said.
Low supply and high demand has seen the office vacancy rate in Sydney’s city fringe market fall below 4 per cent.
The transaction marks the latest Sydney investment for Marks Henderson, following its acquisition of 19 Foster Street in Surry Hills for $39.5 million in March.
Early last year, Marks Henderson picked up a commercial asset adjacent to Sydney’s Sirius building, at 88 Cumberland Street, in Sydney’s Rocks precinct for $56 million on a sub-5 per cent yield.
Mercer Property’s Tom Speakman and Matt Davoren in conjunction with CBRE’s Harry George negotiated the latest 19A Boundary Street sale on behalf of Haben Property Group.