RSL New South Wales is readying to offload a rare boutique redevelopment site in the Sydney CBD’s Midtown precinct.
The four-storey office building occupies a 291sq m site at 262 Castlereagh Street, between Bathurst and Liverpool Streets,
with ground-level retail comprising a net lettable area of around 925sq m.
The NSW branch of the Returned and Services League picked up the building in 2014 for $8,690,000. Colliers' agent Eugene White said the asset is being offloaded as surplus to the club's needs.
White said "unprecedented" levels of new infrastructure and major development in Sydney's CBD were drawcards for investors, developers and occupiers alike.
“[There] are few remaining undeveloped boutique sites within the CBD providing the opportunity for redevelopment in the short term,” White said.
“While the B8 metropolitan centre zoning permits a wide range of uses including commercial, strata, hotel, student accommodation and retail (subject to council approval).”
The office listing could prove a litmus test for B and C-grade assets in sector.
Colliers' investment services director Vince Kernahan added that the abundance of new infrastructure and major developments on offer in the Midtown precinct would deliver valuable amenity and new life to the area.
“The Pitt Street North over-station development will include a
39-level office and retail tower of 47,000sq m, while the south
over-station development will deliver Sydney’s first build-to-rent tower comprising 230 apartments.”
Colliers' Tom O’Neill said the asset was one of the Midtown’s last remaining boutique redevelopment opportunities, with its location holding particular appeal for the legal profession.
“With no new strata office developments in the pipeline,
262 Castlereagh provides an ideal opportunity for a new strata tower to deliver boutique floorplates [near] the Downing Centre Local District Court.”
The tide may also be starting to turn for a development landscape hard-hit by the economic conditions of the last few months, with White upbeat about the asset's appeal on both levels.
"Colliers International is seeing increased levels of enquiry, particularly in low supply and high demand suburbs," White said.
"Moderately-scaled development opportunities with holding income, such as 262 Castlereagh Street appeal to a large audience due to the quality Sydney CBD location and future investment flexibility."
The property is expected to hit the market mid-June.