Family-owned developer and builder Level 33 tried three times to acquire a 363sq m property in Kogarah before filing plans for a 10-storey residential building on 10 surrounding lots.
Documents before the Georges River Council show three lots will be left isolated between two medium-rise residential buildings if Level 33 is approved for the 112 apartments in the mixed-use development.
The Eddy Haddad-led builder-developer has applied to build the $35-million project on the combined 2398sq m at 1-5 Stanley Street and 1-11 Princes Highway in Kogarah, about 15km south of Sydney’s centre.
However, in October 2018 the New South Wales Land and Environment Court approved 96 apartments in a residential building at 11 Stanley Street and 28-36 Victoria Street.
While that development approval is due to lapse in just two months, if construction was to be commenced, the three neighbouring lots—at 7, 9 and 9A Stanley Street—would be isolated between the two developments, according to town planners Sutherland and Associates Planning.
“Level 33 has attempted to acquire 7, 9A and 9 Stanley Street for amalgamation into the development project, in accordance with the requirements of Section 10.1.6 of the Georges River Development Control Plan 2021,” Sutherland and Associates said.
The developer successfully negotiated a commitment from the owners of 9 and 9A Stanley Street but had failed to convince the owner of number seven.
Twice in July of 2021 Level 33 had delivered an appraisal of the site, each time including an offer for $2.346 million.
Three times in the following two months additional offers—rising from $2.5 million to $3 million—were hand-delivered.
“The final offer reflects a purchase price of $2717 per square metre of gross floor area which was approximately 32 per cent higher than the highest comparable sales rate in the area,” the town planners said.
“Level 33 has not received any acceptance of the final offer.
“Without the ability to acquire 7 Stanley Street, the acquisition of 9 and 9A Stanley Street becomes irrelevant.”
Haddad’s Kogarah Investments No. 3 closed deals on the surrounding 10 properties between March and December of last year, paying more than $24 million in total.
Online records show the lot at 7 Stanley Street last changed hands in April of 2002 for $481,000.
Plans by architects Tony Owen Partners call for a four-storey podium with a two residential-tower setback above. There are 26 one-bedroom apartments, 76 of two bedrooms and 10 of three bedrooms, with three commercial tenancies at street level.
Four basement levels will allow parking for 143 vehicles.
The planners say a 268sq m roof terrace will maximise communal open space.
Free-standing houses, a small apartment building and some commercial space will be demolished to make way for the development.
“The character of the area is rapidly evolving from a low-density to a high-density residential area, consistent with the recent changes to the zoning of land in the Kogarah North precinct and the associated increases to height and floor space ration development standards,” Sutherland and Associates said.
“Development surrounding is rapidly transforming from that of single storey and two-storey houses, to 11 and 12-storey apartment buildings which reflect the recent up-zoning of the area.”
The development application also seeks to consolidate the ten lots.
The Kogarah plans come just six months after Level 33 lodged documents for a 19-storey, two-tower shoptop development in the heart of Wollongong.
That project, estimated to cost around $73 million, will include 262 apartments above 1200sq m of retail space with seven separate tenancies.
