Strata Owners Combine to Sell Pitt Street Tower

The owners of a 16-storey office tower in Sydney's CBD have banded together to take their commercial asset to market.

The building, located at 70 Pitt Street, comprises two levels of sub-ground accommodation, ground and basement level retail totalling 959sq m, and 4,931sq m of office space over 13 levels.

The site holds significant redevelopment potential under current planning controls and benefits from its central location within a tightly held precinct.

Cushman & Wakefield and Knight Frank are jointly managing the sale on behalf of the united owners.

The building will be presented to the market through the sale of 23 lots, equating to approximately 85 per cent strata interest in the commercial office tower.

Related: National Office Vacancy Rates Tighten Due to Demand in Sydney, Melbourne

“The Sydney CBD continues to gain appeal as a global destination and will further benefit from the NSW Government’s planned $50 billion investment into Sydney’s infrastructure and transport revolution,” Cushman & Wakefield’s associate director of capital markets Brad Hamilton said.

Sydney's central office tenants stand to benefit from city shaping projects currently under way including Sydney Metro, Sydney Light Rail and major upgrades to Circular Quay Ferry Terminal.

The 70 Pitt Street sale is expected to generate strong interest from local and global investors seeking to acquire an underdeveloped asset in the heart of Sydney amidst tightening vacancy rates.

“The opportunity to acquire office assets in the financial core for less than $100 million is extremely rare,” Knight Frank’s director of commercial sales Jonathan Vaughan said.

Sydney CBD's office vacancy is currently the lowest it has been in years sitting at 4.6 per cent with B-grade office buildings outperforming the broader market in terms of rental growth.

The city currently faces a supply shortage over the next few years scrambling for space in an undersupplied market, awaiting a wave of new office developments currently under construction and due to hit the market in 2020.