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The former Waterloo home of Fratelli Fresh and Danks Street Produce Merchants has hit the market with hopes to net more than $25 million.
While 3-7 Danks Street is currently owned by Sydney-based developer Addenbrooke, the Quattroville family operated the Danks Street Produce Merchants in the warehouse since October 2016. They closed the European-style markets at the end of 2017, citing changes in the industry caused by food delivery services such as Uber Eats and Deliveroo, Good Food reported.
The family, led by Peter and Annette Quattroville who still run the Fourth Village Providore in Mosman, bought the two-storey property for $10 million in December 2013, Domain Group records show.
Before the Quattrovilles’ purchase, the Danks Street building was also home to the first Fratelli Fresh outlet, operating as a restaurant as well as a food hall selling groceries and produce for 10 years, before hospitality giant Urban Purveyor Group acquired the brand in 2016.
The building has an allowable gross floor area of 4250 square metres on a site occupying 2125 square metres.
One of three spaces in the building is being leased for more than $700,000 until June 2019. The property will then become vacant, allowing for redevelopment with a height limit of 15 metres.
The site can also be subdivided into an eastern site and western site, spanning 712 and 1413 square metres respectively.
CBRE’s Harry George, who holds the listing with Scott Gray-Spencer and Gunning Real Estate’s Tom Speakman, said gentrification in the southern CBD fringe suburbs means redevelopment potential is strong.
“It is expected that this building will be repositioned to a mixed use development including commercial office, showroom and retail,” Mr George said.
He added that the converted warehouse concept would attract “next-generation tenants”.
“Office space requirements are changing, with tenants now seeking creative office space in locations such as Waterloo that are close to amenity and public transport.”
Mr Speakman said owner-occupiers, developers and investors are showing interest in the property.
“It’s a pretty iconic and classic-looking property, it’s got a sentimental value to it,” he said.
“It’s a terrific, versatile asset, it’s got a lot of development upside, it can benefit from that whole Green Square precinct (with its) improving infrastructure, and (it’s) a good time to buy it.”
Underdeveloped industrial properties in inner-city fringe suburbs are appealing to investors and developers, as office stock in the Sydney CBD continues to see a squeeze. A three-level warehouse in Chippendale sold for $28 million in late March to a private investor, who wants to redevelop it into offices.
Expressions of interest for the Danks Street property close May 9.