Property investor and developer Tipalea Partners has joined the cultural shift taking place in Sydney’s suburb of Alexandria, buying a second industrial site for $24.5 million.
Located on a 6,175sq m site at 23-27 Bourke Road, the industrial warehouse is just 350m from the new $13 billion Green Square town centre. The 4,933sq m warehouse is divided into four tenancies, offering a mix of warehouse, office and showroom space. Current occupants include Spatial Property Styling and Savi Maurizio Furniture.
Tipalea plans to develop the newly-acquired 23 Bourke Road site for five new boutique hybrid retail, warehouse and office properties. The company also purchased 29 Bourke Street for $13.4 million last year and will combine the sites into a retail and showroom space to cater to the growing residential market in the area.
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The sale was negotiated by CBRE’s Nathan Egan and Stephen Grant, who said the property’s central location in the highly desirable suburb of Alexandria underpinned strong buyer interest in the asset.
“South Sydney and Alexandria remain among the most attractive locations for investors and developers looking to secure assets in high growth areas, with the 16 offers received for this asset testament to the strength of demand,” Egan said.
“Freestanding properties such as this one are even more sought after given the limited available stock in this area.”
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Alexandria, and other southern Sydney suburbs, have undergone a shift recently from their predominantly industrial roots as developers look to answer the growing and desperate need for commercial space.
“Tenant demand in the commercial sector is at an all-time high, and with surrounding markets experiencing supply constraints this puts a stronger focus on Alexandria,” Egan said.