Stadia Capital has bought a Harry Seidler-designed office building in North Sydney from a consortium of investors including developer RBG for more than $80 million.
The six-level office building at 41 McLaren Street has 8,450 sqm of net lettable area and 91 car bays.
It is situated on a 2,359 sqm site with an underlying B4 mixed-use zoning, allowing for both office accommodation and residential.
The previous owners have prepared a development scheme which retains the existing heritage building and allows a potential six-level office addition.
The property is in the middle of the North Sydney Council’s Ward Street Precinct Masterplan area, which will provide extensive parking, new office developments and substantial plaza areas.
Colliers’ Jon Chomley and Harry Bui negotiated the transaction.
Chomley said it was a significant sale for an ever-growing and improving part of North Sydney.
“The opportunity exists to undertake a major refurbishment of the building as well as potential for further development,” Chomley said.
“North Sydney is a dynamic precinct that is currently in the midst of the biggest infrastructure and development boom in its history.
“With significant uplift in investor and occupier demand, North Sydney has almost become an extension of the CBD and is set to continue to flourish.”
“We are currently assisting the purchaser with their future plans for the asset, which includes an exciting development scheme incorporating the existing Seidler building with brand new prime grade office space,” said Director in Charge Sydney North Dan Walker.
The transaction is a part of a major revitalisation in North Sydney, with three major developments currently underway.
Colliers said the 88 Walker St development would provide 11,700 sqm of NLA and is due for completion in October 2022.
Another development on the corner of Blue St and William St will provide 14,961 sqm of NLA, while the Victoria Cross development will provide approximately 56,000 sqm of NLA.
There are a number of additional towers seeking development approval, including 64,000 sqm at 110 Walker Street, 42,835 sqm at 100 Walker Street and 33,000 sqm at 107 Mount Street.
The deal comes after the Australian Unity Office Fund agreed to sell a grade-B office in Parramatta for $66 million this week.
In other office news, Singapore-listed CapitaLand Integrated Commercial Trust recently purchased two grade-A office buildings in Sydney for $330.7 million, while GIC and Charter Hall formed a joint venture to buy the 50 Marcus Clarke office building in Canberra’s CBD for $335 million.
Last month, ISPT bought the headquarters of Victoria’s Country Fire Authority in Melbourne’s eastern suburbs for $35.8 million, while Cromwell Property Group bought a 24-storey office building in Brisbane’s CBD for $184.7 million.