A fully leased A Grade office building in Parramatta has sold for $73.97m.
The property at 27 Argyle Street is an 8 storey building providing 10,399sqm of office space which is fully leased to Government Property NSW with just under 3 years remaining on the current lease.
The building which was constructed in 2006 was sold by CBRE on behalf of a private investor (Special Gold P/L), following an on market campaign in August 2020. The purchaser was PM2 Argyle P/L.
The 2,000sqm property is located approx 400 metres to the Parramatta rail station and adjacent to the Westfield Parramatta car park. The site is currently zoned Mixed Use with an FSR of 4.2:1 and a 36m height limit, suggesting the existing site is fully developed under the current planning scheme.
In 2019, SCentre lodged plans with the NSW government for a 42 level office building on Argyle Street (above Myer), yielding a total of 112,000 square metres of office space and scheduled to cost $492 million.
If the SCentre building is approved, it will set a precedent for 27 Argyle Street which may provide an opportunity for the redevelopment of the site into a much larger asset.
The adjoining property at 33 Argyle Street was sold in January 2019 for $40m representing a passing yield of 4.93% and a fully let initial yield of 5.25% and a rate of $7,730/NLA. The purchaser of No 33 was Roxy Pacific and Tong Eng.
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