North Sydney the Number 1 Option For Developers and Investors

31 May 2017

North Sydney is experiencing a fundamental shift in its makeup with the billion dollar Victoria Cross train station shifting the centre of town north along with a pipeline of new office, retail and hotel developments expected to propel Sydney’s second largest office market into an exciting new phase of growth and revitalisation over the coming years. The backdrop to this is tightening office vacancy rates which are expected to trigger a surge in office rents along with increasing demand for luxury apartments in North Sydney and surrounding harbour side suburbs.

In light of this, 8 West Street, strategically positioned on the fringe of the North Sydney CBD, within close walking distance of the new Victoria Cross Station and other retail amenities is set to hit the market later this month through Graeme Russell, Neil Cooke, Stuart Cox and Tim Grosmann of Savills and Nicholas Heaton, Scott Gray Spencer and Sharon Yang of CBRE, on behalf of Property Bank Australia and Security Capital Corporation.

8 West Street is a landmark, free-standing building over 11 levels and approximately 6,023.1sq m of net lettable area, with 77 car spaces and net income of circa $3.2 million per annum, with medium term residential potential. The property commands a land area of approximately 1,815 sq m.

The concept drawings prepared for this Lower North Shore elevated site provide for 70 high end residential apartments and four retail suites within a 13 level building benefitting from two existing basement levels providing 71 car parking spaces.

Perched upon the highest elevation within North Sydney, these apartments will capture panoramic district and harbour views. The conversion will offer an ideal mix of 1, 2 & 3 bedroom penthouse apartments (STCA) providing an indicative GFA of 6,900 sq m.

According to Graeme Russell, Director of Capital Transactions at Savills, “With the significant redevelopment of North Sydney, very few sites can provide this level of amenity, proximity to the Sydney CBD and new metro rail coupled with panoramic views to all elevations. From an office supply perspective, North Sydney is the most geographically and demographically restricted office market in the country.”

“Local, interstate and international developers will be drawn by the rare opportunity to secure a landmark property situated on the fringe of North Sydney CBD that is well suited for future residential conversion.”

According to Nicholas Heaton, NSW Head of Private Clients & Metropolitan Investment Properties of CBRE, “From an office owners perspective North Sydney is primed for strong rental growth over coming years which will underpin further growth in values, but it also sits within one of Sydney’s wealthiest demographics meaning demand for luxury apartments is expected to continue and indeed grow.”

2016 saw the premium apartment market defined by record breaking sales, with sales rates achieving in excess of $40,000/sq m in the Lower North Shore.

“8 West Street offers buyers flexibility to either hold the property long term and take advantage of the forecast rental growth in the area, or alternatively enjoy the cash flow and focus on the medium term opportunity to convert the building to luxury residential apartments,” Mr Heaton said.

8 West Street North Sydney is for sale through Savills and CBRE via an Expressions of Interest campaign, closing 28 June 2017.

 
 

Key Contacts

Graeme Russell

Graeme Russell

Director
Capital Transactions

Savills Sydney

+61 (0) 2 8215 8947

 

Stuart Cox

Stuart Cox

Director
Residential Site Sales

Savills Sydney

+61 (0) 2 8215 8810