A 1930s heritage-listed warehouse within the growth corridor of Sydney’s CBD has been listed for sale with an expectation if will be offloaded for more than $55 million.
Located at 499 Kent Street the site occupies a prime position between Druitt and Bathurst Streets and well-serviced by a diverse range of cafes, restaurants and shopping amenities from the Barangaroo and Darling Harbour Live precincts.
Designed by architect William Ritchie in 1936, the building was a warehouse and film exchange for the Universal Film Manufacturing Co, better known now as Universal Studios.
An Australian private investment company paid $6.765 million for the property in 2004. The property generates an annual rental income of about $1.5 million.
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The sales campaign is being handled by Knight Frank’s Andy Hu, John Bowie Wilson and Jonathan Vaughan.
Hu said the strength of the offer and current market conditions will draw both local and offshore interest.
“As the Sydney office market continues to outperform the rest of Australia, the opportunities for commercial real estate remain excellent with record-low interest rates and office vacancy rates, and consistently high hotel occupancy levels underpinning development,” Hu said.
The 811-square metre commercial building offers a strategic acquisition opportunity directly opposite Town Hall and Town Hall Station.
Infrastructure improvements currently underway will also see the site connected by the Sydney Light Rail Network, further improving transport links and the surrounding amenities.
Knight Frank associate director of research Alex Pham said the Sydney CBD commercial market has continued to gain traction.
“Strong demand, limited new supply and significant stock withdrawals continue to characterise the Sydney CBD office market, which saw the vacancy rate plummet from 5.8 per cent to 4.6 per cent over the six months to January 2018.
“This is the lowest level of vacancy since July 2008 and positions Sydney for further rental growth going forward.”