A commercial building with development approval in an increasingly popular part of Sydney’s inner west has sold for $850,000 over the reserve at auction, demonstrating the pent-up demand for property as the state anticipates ‘freedom day’ next month.
The vacant three-level mixed-use building at 310-312 Marrickville Road in Marrickville was sold for $9.35 million to an interstate investor during an online auction that attracted nine registered bidders.
It was sold by the Tsimnadis family, who are well known in the Marrickville area, having owned the property since 1975 and constructed the existing building.
The auction campaign for the commercial building with development approval was run by Anthony Pirrottina and Demi Carigliano of Knight Frank and Christian Frangelli of Bawdens.
The Marrickville building currently has an internal area of 1,800sq m, with an existing basement car park for 20 vehicles, and sits on a high-profile 875sq m site with three street frontages – to Marrickville Road and Tuohy Lane, which wraps around the property.
The property currently has two levels of commercial/retail accommodation and a top floor residential apartment, but has development approval for 20 residential apartments and 1,177sq m of commercial building area.
The DA involves the renovation and extension of the existing building, with no demolition or excavation required.
Mr Pirrottina said the result of the auction campaign, with the price $850,000 over the reserve, demonstrated the current pent-up demand for commercial property in Sydney.
“We have been saying for some time that buyer demand is still solid despite the lockdown, particularly for development sites, and this is evidence of that,” he said.
“The sale price is very strong and is the third massive result we’ve had in Marrickville over the past three months.
“As a suburb, Marrickville is transforming and values are going through the roof.
“There has been widespread gentrification and a sustained improvement in local amenity as a result of the rezoning of traditional industrial lands to alternate uses, as well as significant Government investment in public transport projects.”
Other recent sales in Marrickville include 248-250 Marrickville Road, which sold for $7.67 million to Brag Media, some $2 million above the reserve.
Mr Carigliano said while Marrickville was sought after by buyers, the drawcards of this particular Marrickville property were its high-profile location and development potential.
“It’s located just a short walk from the Marrickville and Sydenham train stations, both of which are being upgraded to form part of the new Sydney Metro network, and there are bus stops at the property’s doorstep on Marrickville Road,” he said.
“There is also strong surrounding amenity within walking distance, which includes the forthcoming Danias Family/Toga development which will add to the already an impressive array of cafes, restaurants, gyms, bars and speciality retailers.
“The development potential was also attractive, particularly the fact that you can convert the building, which already has basement car parking, so it’s much cheaper and easier to build.
“The buyer plans to convert it to residential apartments and have retail on the ground floor.”
Mr Pirrottina said commercial property buyers were clearly starting to gear up now that New South Wales’ freedom day had been announced for October 18.
“Buyers think this is their last chance to buy before things open up and the market returns to normal,” he said.
“We are starting to see more vendors choosing to go ahead with listing their properties, but it’s early days, and we expect this will happen more and more as the end of the lockdown nears.”