A Surry Hills office property, converted from a historic warehouse, has changed hands for as much as $28 million.
The three-storey former industrial property was built in the 1920s and was once known as the Lamson Paragon factory.
On a corner site at 63 Ann Street, the 2381 square metre building was converted in the 1990s into an office property with lower ground parking.
It was sold by the Practec Group, a Sydney-based property development and fit-out firm, to an undisclosed buyer. Market sources indicated property was expected to trade for at least $28 million.
The property is bounded by frontages to Ann, Little Riley and Little Albion Street and is not far from Central Station.
It stands directly opposite Frog Hollow Reserve within the busy Surry Hills office precinct where the vacancy rate is now at 1.3 per cent, the lowest recorded for that market.
The double-brick building has floor plates of around 934sq m.
JLL and SKW Property were appointed to broker the deal.
“Sixty-three Ann Street is a unique office warehouse conversion in the tightly held Surry Hills office market,” said JLL’s Steven Tsang.
“This kind of office warehouse conversion is really a once-in-a-cycle opportunity. The corner property has been privately held for over 23 years.”
Entities related to Practec have held the property since 1995.
“Surry Hills is the creative and innovative hub of Sydney,” said SKW Property’s Stephen Wan.
“Current occupants of 63 Ann Street are attracted by the boutique space, central location and surrounding amenity.”
The property’s origins date back to Sydney’s colonial history. It formed part of a 105-acre land parcel granted to the former lieutenant-governor of NSW, Joseph Foveaux, in 1793.
It was later acquired by the colony’s commissary, John Palmer, who held it until 1825.