A rare opportunity in a sought-after suburb with the potential to add value is expected to draw a broad range of interest in the newly listed Edgecliff Centre.
JLL and Knight Frank have been appointed to sell the privately held retail centre and six-storey office complex in the suburb considered to be the gateway to Sydney’s blue-ribbon eastern suburbs.
JLL head of Australasian retail investments Simon Rooney said the centre was one of the most prominent and successful mixed-use developments in the area, with more than 70,000 cars passing daily on New South Head Road as well as railway and bus transport catering for an estimated 14,400 passenger movements a day.
The landmark Edgecliff Centre is coming to market, a strategic generational opportunity, with significant value-add potential, according to JLL. Photo: Supplied
“We are seeing a real investor leaning towards these well-established, resilient and secure mixed use investments in absolute core locations, which are obviously very hard to replicate, particularly over major transport hubs,” said Mr Rooney, who is also marketing high-profile CBD property 160 Pitt Street on behalf of Washington H. Soul Pattinson & Company.
Anchored by Aldi, the retail area has a total gross leasable area of 3154 square metres with a further 24 specialty tenancies.
The freestanding tower has 360-degree views of the Sydney CBD, Rushcutters Bay, Paddington, Double Bay, Woollahra and across to Point Piper. There is the opportunity to redevelop the site to adaptive use, subject to council approval.
Knight Frank’s head of Asia markets, Dominic Ong, said the Edgecliff Centre offered the potential for significant income reversion.
And there were limited options for contiguous office space in the Sydney fringe market, said JLL’s national director, sales and investments – NSW, James Aroney.
“Vacancy has decreased to just 4.3 per cent, the lowest vacancy rate nationally, while vacancy within the outer eastern fringe precinct is just 4.4 per cent,” Mr Aroney said.
“With ready access to public transport a strategic commercial landholding of this size will likely appeal to broad range of private investors, syndicates and developers.”
The site is 10 minutes from the Sydney CBD by train and has basement parking for more than 200 vehicles.
Some tenants of the centre, which houses professional services, embassies and medical practitioners, have leased office space for more than 20 years, with typical floor plates of 1400 square metres.
Of the 10,845 square metres of total space in the building, there is 7691 square metres of net lettable commercial area.
Apartments make up more than 80 per cent of Edgcliff housing stock and range in price from $400,000 for a studio to $3.75 million for a boutique apartment in the new development One Lincoln Place.
Domain Group puts the median unit price at $824,750, but with another new boutique development, Thane, that has been selling off the plan, there’s a chance that median could head north this year.
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