An exceptional development opportunity at one of Sydney’s most iconic street addresses has sold to a private investor, setting an extraordinary benchmark as the first asset sold following recent council planning control changes to revitalise the area.
JLL’s Capital Markets NSW Associate Director, Willem Watson sold the property at 213 Oxford Street, Darlinghurst via Public Auction achieving a 2.59% yield and a land rate of $23,762.37 per sqm, a signal of the depth of investor appetite for assets with development upside.
213 Oxford Street is an underdeveloped freehold mixed-use asset comprising ground floor commercial space with a two-bedroom unit above, totalling 147 sqm Gross Floor Area (GFA).
Mr Watson said, “The City of Sydney council has eased planning controls to encourage the development along the iconic Oxford Street precinct and help foster the growth of the creative industries in the area. The sale of 213 Oxford Street sets the benchmark for the cluster of assets within these recent eased development controls.
“The corner of Flinders and Oxford Street has been the subject of developer speculation for years and is now on the precipice of transformation. Located in the primely positioned corner opposite Taylor’s Square, 213 Oxford Street presented investors the rare opportunity to purchase a stake in the ever-changing development landscape and is set to benefit from the council endorsed strategy to revitalise the area.
“The opportunity to obtain a foothold in one of Australia’s strongest performing office markets, which has considerable growth opportunities for investors and owner occupiers was hotly contested. The sales campaign generated significant interest from a broad buyer pool, consisting of owner occupiers, high net worth individuals, developers and private capital,” said Mr Watson.
213 Oxford Street sits on a generous site and has the prospect to develop substantial net lettable area over three extra floors plus a basement encompassing a potential GFA of 384.56sqm (STCA). The asset offers considerable rental upside through repositioning to alternative uses including creative offices, retail, F&B and accommodation.
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