This article is from the Australian Property Journal archive
SYDNEY’S lower north shore is seeing a spurt of investment activity, with a private purchaser paying $10 million for a freehold commercial building as the Tavakoli family puts the Rosenthal Arcade to the market with hopes of fetching $14 million.
At 2a Phoenix Street, the 1,009 sqm building was offloaded by PHFB Investments Pty Ltd on a yield of 5.19% through Andy Hu and Jordan Lee of Savills Australia.
Along with colleagues Stuart Cox and Johnathon Broome, they are marketing Rosenthal Arcade at 79-83 Longueville Road in Lane Cove Village. Situated on a 734 sqm site, the three level building has 1,689 sqm of net lettable area across nine ground floor shops and 11 commercial suites on the upper levels, as well as basement parking.
It contains a walk-through arcade along the ground floor and is adjacent to the newly developed village centre The Canopy.
Rosenthal Arcade is currently 80% leased and generating a passing net annual income of $730,776, or over $829,000 fully leased. Value uplift potential can be found in securing future tenants for the vacant commercial suites situated on levels one and twZ.
Cox said the building also lends itself to a residential conversion or shop top housing redevelopment as an alternate use under the existing B2 Local Centre zoning, with a potential gross floor area of 1,835 sqm across the site and a FSR of 2.5:1.
The Tavakoli family have owned the property for over 13 years.
“With interest already around the $14 million mark, we expect the on-market campaign to generate a significant amount of buzz in the area, as local and offshore investors, developers and SMSFs look to add value by either re-letting or refurbishing the existing asset or redeveloping it to further capitalise on the recent redevelopment in the surrounding village,” Broome said.
Meanwhile, the long standing Australia Post building situated at 64 Spit Road in Mosman is also set to his the market.
Cox, Broome and Neil Cooke will market the Spit Junction asset, offered with a two year leaseback plus a two year option. The property is on a 942 sqm site and also has a FSR of 2.5:1 with B2 Local Centre zoning.
“Providing the potential for water views from the upper levels within a future project will underpin gross realisations for the end product as well as a potential gross floor area of 2,355 sqm,” Cooke said. There is potential for circa 30 units plus associated ground floor retail space.
