The Costas family has sold a service station with development approval for an apartment project in Narwee, Sydney for $8.3 million.
A local service station investor bought the 1,696 sqm site at 41 Broadarrow Road, which was occupied by an Ampol service station.
The site has development approval for 61 oversized residential apartments and 861 sqm of ground floor retail and commercial space, offering 6,424 sqm of total gross floor area.
The Costas family has owned and run the service station for 43 years, marking the first time the property has sold in more than decades.
Knight Frank’s Anthony Pirrottina and Demi Carigliano negotiated the deal.
Pirrottina said the property provided an extremely rare opportunity to landbank with the strong holding income via multiple income streams or develop immediately with a prime development approval.
“The campaign generated strong interest, with around 100 enquiries and five first round offers,” Pirrottina said.
“The site represents a very rare land holding of scale on the doorstep of a train station, which generated interest from a range of purchasers looking to either operate the service station or redevelop the property in the immediate term.
“Suburbs surrounding Narwee have undergone significant gentrification in recent years such as Beverley Hills, Kingsgrove, Hurstville and Roselands, with an emphasis on higher density commercial and residential repositioning, but Narwee is one Sydney’s most untouched and boutique suburbs to date.”
Carigliano said demand for quality residential development sites continued to defy the slowdown in the wider residential market.
“Despite the current commentary around rising interest rates and how it may affect residential buyers, developers are confident in investing in well-located development sites,” Carigliano said.
“There will always be buyer demand for high-quality residential property close to the city, and with our population only growing demand is only going to get stronger once interest rates stabilise.
“Buyers were attracted to this site not only for its development potential, but because of the quality of the current investment, with service stations being a solid investment in the current environment.”
Recent service station deals include Strintzos Property Group’s disposal of a service station development in the Melbourne suburb of Tarneit for $19.91 million in February.