Buyers tipped to circle value-add office opportunity in The Rocks
Boutique real estate investment manager Sumner Capital is moving to sell a historic Sydney office building in The Rocks as it completes a fund disposal program.
10 Apr 2019
The leasehold interest in 117 Harrington Street represents the last real estate asset in Australia for one of Sumner Capital’s Swiss based clients.
CBRE’s Kenny Duncanson and Harry George will steer the International Expressions of Interest campaign, which is expected to generate interest from high net worth investors and boutique fund mandates.
“The building’s strong investment fundamentals and diverse tenancy mix will appeal to both domestic and international buyers seeking to capitalise on tenant demand for well-located character buildings,” Mr Duncanson said.
“The property is strategically positioned within The Rocks, bordering Circular Quay, in a location set to benefit from major infrastructure projects such as the Sydney Light Rail, Sydney Metro, Circular Quay Ferry Wharf upgrade and Wynyard Station upgrade.”
The six-level, heritage-listed building was refurbished in 2007 and offers a net lettable area of 1,404sqm.
Major tenants include CCUBE, Iris Sydney and Artazan Property Group.
Mr Duncanson noted; “With its heritage listing and unique floor layout, including outdoor areas, 117 Harrington is poised to capitalise on increasing tenant demand for creative office environments. The building also offers rental upside, with the current lease expires occurring after the delivery of the Sydney Light Rail and in time to capture tenant demand off the back of new premium grade towers such as Quay Quarter Tower and Circular Quay Tower.”
Another buyer draw card for purchasers will be the building’s flexible zoning, which permits residential use subject to the relevant planning approvals.
CBRE’s Mr George added; “The potential for a strata subdivision and conversion to residential provides an incoming owner with future upside, given the building’s Sydney Harbour Bridge views. A conversion to a boutique hotel with a rooftop would be another possibility, subject to the relevant planning approvals.”For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.