An eight-apartment unit block in Cremorne is set to hit the market, offering savvy investors a potential development opportunity under the law of existing use rights.
The block of one-bedroom strata titled apartments is positioned on an 842sqm corner site and enjoys a reclusive leafy vista overlooking Brightmore Reserve, a short walk from the Harbour, public transport and Cremorne shops.
The property will be offered for sale by CBRE’s Toby Silk, Nicholas Heaton and Jason Lowry.
Mr Silk said the unit block was owned in one line by a local investor who was looking to recycle the capital into other opportunities.
“Investors will be attracted to this multi-tenanted investment as it’s almost fully-leased, with only one empty apartment which has been left intentionally vacant for the duration of the campaign to make inspection activity easier,” Mr Silk added.
“We expect investors will add value through refurbishment and rental reversion; however, we also expect there will be an appetite to pursue a potential redevelopment play,” Mr Heaton commented.
“Through existing use rights, the property can potentially be developed into a modern apartment block development making better use of the site. Despite the property being in R2 Low Density Residential zoning, as it has apartments on the land, existing use rights means it could be extended or demolished and a whole new apartment block built,” he said.
A recent example of this is 14-20 Premier Street, Neutral Bay, which is in the same council area and features the same zoning as 40 Brightmore Street. It was four adjoining apartment blocks of approximately four apartments, each received approval to be developed into 36 apartments through existing use rights. Other examples under the North Sydney LEP in the same zoning include 1 The Boulevarde, Cammeray; 2 Premier Street, Neutral Bay and 8 Illiliwa Street, Cremorne.
The property will go to market on the 26 October with Expressions of Interest closing on 18 November.
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