The most significant consolidated property to be brought to market in decades in Bondi Junction is set to be hotly contested by developers and investors looking to secure the landmark site.
Positioned at the centre of renowned Oxford Mall with its dominant land area of 1,125sqm, the properties at 171-181 Oxford Street provide a substantial net income from 37 tenancies and is the first development site in the mall to come to market that has significant scale and the ability to unlock substantial future redevelopment.
The Colliers team of Miron Solomons and Matt Pontey have the listing, in-conjunction with Andrew Krulis and Michael Burke of Krulis Commercial, with price expectations of over $35 million.
“While the East has seen a focus from developers on Bondi Beach and Double Bay over the last decade, the historically strong commercial hub has once again been in the spotlight as the beneficiary of strong activity thanks to the return of developers looking to unlock major commercial sites for residential development. We are now seeing this led to an unprecedented withdrawal and measurable shortage of commercial office accommodation,” Mr. Solomons said. “As a result, there is pent up demand from local businesses looking for quality office accommodation in this major commercial hub.”
“The commercial market in Bondi Junction has remained resilient and strong with the recent acquisition by prominent developer JQZ of 55 Grafton Street. This has displaced a number of occupants within the Junction and with tight vacancy in the precinct is putting upward pressure on both rents and capital values,” Mr. Pontey added.
“With a wealth of experience in Sydney’s east over many years, we are well positioned to find the perfect buyer for this incredibly rare site in a region that continues to draw a wide array of investors and developers,” Mr. Krulis said.
“Developers will be looking to capitalise on the generous controls suggesting serious bulk and scale rarely seen across Sydney’s Eastern Suburbs. The site has also been strategically positioned to offer demolition clauses on all 37 tenancies wrapping a proverbial ribbon around the site,” Mr. Burke said.
Developers will have to compete with well-heeled Eastern Suburbs Investors looking to secure such a substantial and diverse land holding in the heart of this mini-CBD setting. Commercial assets of this scale are hard to find in the Eastern Suburbs.
The site offers over 30 metres of frontage to bustling Oxford Mall and Spring Street. Investors will undoubtedly see this as a serious land banking opportunity especially considering the fact that it has been decades since a site of any scale has been offered fronting Oxford Mall.
Bondi Junction has been an attractive haven for notable sites of a similar nature, with 3a Bronte Road trading off market for $26.5 million. The deal, which settled earlier this year, saw the Eastern Suburbs Leagues Club invest into the precinct, further strengthening the demand for high quality property in the popular locale.
171-181 Oxford Street, Bondi Junction is for sale via an Expressions of Interest closing November 15th, 2023.
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