A five-level office building in Sydney's thriving St Leonards has hit the market, with price expectations upwards of $15 million.
178 Pacific Highway, currently owned by a private investor, has a Net Lettable Area (NLA) of 1,404sqm and parking for 42 cars. The B-Grade building is anchored by a new 5 year lease to Nature Care College with options until 2036 - a well-established business in the field of natural therapies and complementary medicine education & training.
CI Australia's Associate Director of Capital Transactions, Nick Lowry, and Managing Director of North Sydney, Bevan Kenny are exclusively offering the asset to market via an Expressions of Interest campaign.
Mr Lowry said the offering was likely to be sought-after by investors, developers and potential owner occupiers given its unique cross-section appeal. "178 Pacific Highway has credible and tangible development potential waiting to be taken advantage of. The property is under-utilised with the current controls supporting a floor space of 2,730sqm, which is well in excess of the current improvements. Meanwhile it also provides an excellent opportunity for an owner occupier to maximise a whole or partial floor offering with views towards the Sydney CBD & Western Sydney Harbour. A newly refurbished office space featuring floor to ceiling glazing, excellent natural light and self-contained amenities are key benefits."
Mr Lowry added there was a lack of comparable assets in the St Leonards market, strengthening the offering further. "178 Pacific Highway is one of only ten commercial freehold buildings in St Leonards sized between 1,000 – 2,000sqm. There's been a trend towards redeveloping assets of this size, instead of replicating them. This will ensure buildings such as 178 Pacific Highway continue to be highly sought after by the market," he said.
Mr Kenny said St Leonards remained an attractive investment hub for a number of reasons. "The St Leonards vacancy rate is currently at its lowest point since January 2001 at 6.1%. In the 12 months to January 2019, St Leonards witnessed net absorption of approximately 14,500sqm. Over the same period its CBD outperformed all major office markets in Sydney, with the CBD and Parramatta CBD witnessing net absorption of 10,443sqm & 13,614sqm respectively. Coupled with an anticipated lack of new supply and further withdrawals, we expect the ongoing tightening of the St Leonards office market.
Mr Kenny added, "St Leonards is a well-established health and education precinct with a range of significant assets in these sectors, including the Royal North Shore Private and Public Hospitals and a prominent TAFE NSW campus. This amenity, coupled with long term Government infrastructure commitments, increase the attraction of the location and the asset.”
The EOI Campaign will close Wednesday 29th May 2019. Learn more about the property here.