Sydney, 1 June 2014 – Strong demand for freestanding property with residential conversion potential is underpinning increased sales activity in South Sydney’s industrial real estate market.
Technology solutions firm Crosspoint Telecom Pte Ltd recently acquired a South Sydney freestanding commercial property with residential conversion potential for $2.31 million.
Located at 122 O’Riordan Street in Mascot, the 796sqm Mixed Use property comprises a well-appointed warehouse, office and showroom building with high profile street exposure.
CBRE’s Mark Silva and Chris Ryan, who negotiated the deal on behalf of vendor Visahilt Pty Ltd, said the property’s development upside potential was a key selling factor.
“With freestanding industrial buildings in strong demand, this has generated great results for vendors looking to capitalise on the lack of stock in the market due to industrial properties being sold to residential developers,” Mr Silva said.
“Owner occupiers of properties with underlying residential upside are in turn taking advantage of this demand by offloading their assets for above average prices.”
Further demonstrating the strong demand for freestanding buildings in South Sydney is residential property development firm Advan Properties’ recent purchase of a showroom/warehouse facility for $4.5 million.
CBRE’s Michael Binskin steered the sale of 133-141 Botany Road in Waterloo on behalf of the vendor Kevin Malouf, which resulted in a strong land rate of $4,751 per square metre.
Mr Binskin said the 947sqm property offered a fantastic residential development opportunity (STCA).
“This property represented an ideal investment opportunity for the new owner to undertake a residential development in the increasingly popular South Sydney precinct,” Mr Binskin said.
“Advan Properties intends to capitalise on the area’s strengthening property market, and will lodge a DA for the site’s redevelopment.”
Chubby Elf Pty Ltd also recently secured a creative warehouse conversion for $3.2 million.
Located at 23-25 Doody Street, Alexandria, the 1,230sqm property features expansive frontage, a sizeable courtyard, air conditioning and multiple access points, including roller door access for unloading.
Mr Silva and Mr Binskin, who both steered the sale campaign, said demand for freestanding buildings was stronger than ever.
“With demand for freestanding property in South Sydney continuing to strengthen, owner occupiers are seeking out opportunities to acquire freestanding buildings in the region,” Mr Silva said.
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