According to market experts, local investors as well as offshore groups from Hong Kong, Malaysia and Singapore have recorded strong interest in what little stock is currently for sale (on or off market) with a private investor recently snapping up a freehold commercial building providing 1,009.3sq m of NLA on a 706.20sq m site at 2A Phoenix Street, Lane Cove for circa $10 million from PHFB Investments Pty Ltd on a 5.19 percent yield.

According to Andy Hu and Jordan Lee of Savills Asia Markets who negotiated the 2A Phoenix Street sale, it represented a Capital Value Sales Rate of $10,304 per sqm of NLA – an impressive feat in today’s market.

This month, the well-known and respected Tavakoli family are hoping to capitalise on this recent sale when they go to market to sell ‘Rosenthal Arcade’ at 79-83 Longueville Road, Lane Cove, located within an arguably superior location within Lane Cove Village.

Strategically placed along the gateway entrance to one of the most desirable village communities along the Lower North Shore, 79-83 Longueville Road represents a rare opportunity to secure a perfectly positioned commercial and retail investment property. Situated on a 734sq m* site, providing approximately 1,689.10sq m of Net Lettable Area across a three-level building, complete with basement parking, the property is adjacent to ‘The Canopy,’ a newly developed village centre within Lane Cove.

For sale through Stuart Cox, Johnathon Broome, Andy Hu and Jordan Lee of Savills Australia, the existing asset is made up of 467.30sq m* of ground floor retail area across nine shops and 1,221.80sq m* of commercial area across 11 suites over two upper levels.

The three-level building contains a walk-through arcade along the ground floor providing access from Longueville Road to The Canopy along Birdwood Lane. The arcade walk-through encourages exposure to the high performing ground floor retail shops.

According to Stuart Cox, Director, Residential Site Sales at Savills Australia, over the last five years, Lane Cove has undergone significant restructuring from former low-density housing, to now proudly providing over 1,900 newly completed medium and high-density dwellings, fast becoming one of Sydney’s most desirable suburbs to both live and work.

“The existing retail and commercial building is currently 80%* leased generating a passing net income of $730,776* per annum (or over $829k fully leased). There is significant value uplift for the future owner in securing future tenants for the vacant commercial suites situated on levels 1 and 2.

“The building also lends itself to a residential conversion or shop top housing redevelopment as an alternate use under the existing B2-Local Centre zoning, with a potential GFA of 1,835sq m** across the site (STCA) and a FSR of 2.5:1*” he said.

 
The Tavakoli family have owned the property for over 13 years and Sheeva Tavakoli; vendor and wife of Sydney plastic surgeon Dr Kourosh Tavakoli, said “Off the back of the strong interest generated by Savills recent sale of 2A Phoenix Street, we have made the executive decision to sell and capitalise on the increasing demand for strong yielding Lower North Shore blue chip commercial investments with upside.”

Johnathon Broome, Executive, Residential Site Sales at Savills Australia said, “This is a rare opportunity to secure a mixed-use commercial asset situated within the heart of one of Sydney’s most envious blue chip North Shore suburbs.

“With interest already around the $14 million mark, we expect the on-market campaign to generate a significant amount of buzz in the area, as local and offshore investors, developers and SMSFs look to add value by either re-letting or refurbishing the existing asset or redeveloping it to further capitalise on the recent redevelopment in the surrounding village” he said.

Lane Cove is a well-established affluent suburb with strong demand for commercial and retail amenity having such a large catchment area across the surrounding peninsula suburbs.

A few suburbs away, another North Shore asset is hitting the market next month through Savills Australia; the long standing Australia Post building situated at 64 Spit Road, Mosman.

Prominently located in one of the most prestigious suburbs of Sydney, 64 Spit Road, Mosman represents a rare opportunity to acquire a perfectly positioned premium mixed-use development site located in the highly desirable and affluent Lower North Shore suburb of Mosman.

The site is situated within the heart of Mosman’s Spit Junction which offers an abundance of convenience and amenity, in the form of transport, retail and recreation all within an easy flat short walk from the site.

For sale through Neil Cooke, Stuart Cox and Johnathon Broome of Savills Australia, the property will be leased back by Australia Post Group on a two year term from settlement plus a two year option, and this unique opportunity provides an incoming purchaser the chance to acquire a development site (STCA) conveniently located in one of Australia’s most affluent suburbs.

The opportunity comprises a 942sq m* site benefiting from a generous north-westerly aspect and dual street frontages.

The property is conveniently located just a 100-metre walk from Bridgepoint Shopping Centre, only moments from Balmoral Beach; with the Spit Junction B-Line bus stop providing Sydney CBD access in approximately 15 minutes.

According to Neil Cooke, Director, Residential Site Sales at Savills Australia, “The development controls applicable to the site include a FSR of 2.5:1, 15 metre building height control and a ‘B2– Local Centre” land zoning which permits shop top housing as a permitted use.

“Providing the potential for water views from the upper levels within a future project will underpin gross realisations for the end product as well as a potential Gross Floor Area of 2,355sq m.***

“Prestigious opportunities in this location rarely get offered to the market,” he continued.

Mr Cox believes this site will appeal to investors or developers with the potential for circa 30 units plus associated ground floor retail space.

“Recently, apartments in Mosman have been selling for in excess of $22,000* per sqm and with limited opportunities coming to the market, it is proving very difficult to secure whole buildings in this prestigious suburb.

Savills Australia is exclusively selling 79-83 Longueville Road, Lane Cove via auction and 64 Spit Road Mosman is for sale via an Expressions of Interest campaign.

*Approximate
**For buildings containing Shop Top Housing in Area 1
*** Subject to Council Approval