A freestanding commercial building in the heart of Parramatta’s CBD is up for sale with an expected price tag of around $20 million.
The four-level building at 144 Marsden Street has approximately 2,497sq m of net lettable area, with ground floor retail and three upper floors of office space, on a 839.1sq m site. It also has 21 basement car parks.
The commercial and retail space is currently occupied by a broad range of tenants providing health, legal and financial services, with tenants on the ground floor including Multicare Medical Centre, AVIS printing and Edu Key.
The asset is being sold by a private investor via an Expressions of Interest campaign run by Wally Scales and Linda Zhu of Knight Frank in conjunction with Anthony Khoury and Jon Race of Khoury & Partners.
The property has a WALE of 1.4 by years and a vacancy rate of 4.3 per cent.
Mr Scales said Parramatta was undergoing a major transformation as Sydney’s second CBD, having recently overtaken North Sydney and Macquarie Park to become the second-largest office market in the city due to its central, accessible location surrounded by a rapid population growth.
“Significant government infrastructure investment combined with major commercial and residential development activity by the private sector is increasing occupant demand,” he said.
“This is a scarce opportunity to acquire a freestanding commercial property of this size and price bracket on a prominent corner in the centre of the Parramatta CBD with ample onsite parking.
“The property is conveniently located between the town centre at Parramatta Square and the Parramatta Justice Precinct, which includes the major law courts servicing the Greater Western region of Sydney.
“The location benefits from increased street activation and retail amenity generated by surrounding residential high-rise development.”
Mr Khoury said owner occupiers could capitalise on the short WALE and expansion potential to customise a freestanding corporate facility, while there was plenty of scope for astute investors to increase the income of the building, which is under-rented.
“The current rental and parking rates in the building are amongst the lowest in the Parramatta CBD, so there is plenty of scope to significantly increase the building income in the near term in one of Australia’s fastest growing office markets,” he said.
“Alternatively, the building could be subdivided into strata suites by a developer to exploit the limited supply of available stock in the local market.
“Further refurbishment works and active lease management will enable this asset to outperform in one of the most dynamic office markets in the country.”
Mr Scales said the building also offered upside in the form of potentially adding additional floor space to the existing building or redeveloping in the future.
“In the longer term, this prominent corner site, which has with flexible B4 Mixed Use zoning, could be redeveloped for new commercial, retail, or residential premises.”
The Expressions of Interest campaign for the property closes at 4pm on Tuesday, November 24.
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