351-353 King Street in Newtown
Two fully leased blocks studio apartment unit blocks in Sydney’s inner west have sold for more than a combined $13 million.
A block of 18 studio apartments on 653sq m at 3 Cook Street in Glebe sold for $6.58 million, while a property consisting of two retail shops and 10 self-contained studios on 436sq m at 351-353 King Street in Newtown with sold for $6.48 million.
Situated on the high side of Cook Street, the block at 3 Cook Street in Glebe is in a sought-after location, in walking distance to the Glebe Point Road cafes, restaurants and amenities, with Blackwattle Bay Wharf just 450 metres away and Jubilee Park and light rail station 500 metres away.
It was purchased by a private developer from a private investor in a deal negotiated by Adam Droubi of Knight Frank.
The property was sold at a yield of 4.4% with a net income of $289,000.
Mr Droubi said the block was in original condition, and offered renovation upside through capital improvements or by repositioning the asset as either accommodation or co-living.
“3 Cook Street had great passing income with potential future uplift in a blue-ribbon location,” he said.
“With all apartments currently leased, this rare, low-risk investment will provide the buyer with a consistent income stream.”
351-353 King Street in Newtown is a mixed-use investment set on bustling King Street, just 100 metres away from Newtown Station, underpinned by twelve defensive income streams and rental upside.
The property, which has two retail shops tenanted by a tattoo parlour and jewellery store, was sold following a competitive Expressions of Interest process run by Knight Frank agents Adam Droubi and James Masselos.
“The campaign drew strong interest from an array of purchasers, with multiple offers received,” said Mr Masselos.
“Buyers were attracted to the premiere Newtown location, significant rental upside through the potential for renovations and the immediate proximity to Newtown Station.”
The property, which has five car parks, was purchased by a private local investor with a net yield of circa 4.8%, with a gross passing income of $390,000.
Mr Droubi said the two studio unit block sales demonstrated that there was strong demand for the property type, particularly in great locations.
“Sydney’s inner west is a well-connected, sought-after location, and with proximity to the CBD and amenity it is an ideal hub for professionals and students,” he said.
“This underpins the value of residential property in the area, with rental demand very strong, including for studio apartments.
“These unit blocks were both fully leased, offering solid income for buyers. They also offered potential for future value gains not just through the location, but through future refurbishments.”
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