Marrickville development site sells above reserve

A COMMERCIAL building in Sydney’s inner west has been successfully sold at auction to an interstate investor for $9.5 million, $850,000 above the reserve.

The 1,800sqm three-level mixed-use building, located at 310-312 Marrickville Road in Marrickville, includes a development approval for 20 residential apartments and 1,177sqm of commercial space.

Anthony Pirrottina and Demi Carigliano from Knight Frank and Christian Frangelli from Bawdens managed the sales campaign on behalf of the Tsimnadis family, who have held the property since 1975.

“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,” said Pirrottina in reference to the sale price in excess of the reserve.

“The sale price is very strong and is the third massive result we’ve had in Marrickville over the past three months.

The online auction pulled in nine registered bidders, before selling to an interstate investor who plans to develop the site into residential apartments and ground floor retail.

With triple frontages to Marrick Road and Tuohy Lane, the building sits on a 874sqm site and currently has two levels of commercial/retail accommodation with the third floor utilised as a residential apartment. As well as basement car parking for 20 vehicles.

The development approval for the site, includes the renovation and extension of the existing building, without requirements for demolition of excavation.

“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,” said Pirrottina.

248-250 Marrickville Road, Marrickville was also recently sold by Knight Frank for $7.67 million, around $2 million above the reserve, as development sites dominate commercial sales for a locked down NSW.

The site sits within walking distance of the Marrickville and Sydenham train stations, which are being upgraded as part of the Sydney Metro Network, as well as other public transport connections.

“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,” said Carigliano.