A prime building in North Sydney opposite the new Victoria Cross railway station has sold for $54m.
The property at 53 Berry Street sits on a 657sqm site at the corner of Berry Street and Miller Street. The building comprises 6 levels of office space above a ground floor retail tenancy with a total NLA of just 3,442sqm together with 30 car spaces.
The sale price represents $15,688/sqm of NLA or $82,000/sqm of site area and a passing yield of 4.72%.
The property was offered for sale via by Knight Frank who are yet to comment on the deal.
The introduction of the Sydney Metro to North Sydney and the subsequent changes to the North Sydney LEP generated significant levels of interest in the development market prior to COVID.
The recently completed project by Wintens at 1 Denison Street is 80% committed and 118 Mount Street also nearing completion, is 65% underpinned by Zurich.
In July this year, Lend Lease announced that it had obtained Development Approval for its 56,000sqm Victoria Cross over station development which is due to commence construction in 2021 and is awaiting a tenant pre-commitment.
According to Knight Frank’s latest research report, the strong rental growth experienced over the last couple of years has now halted as a result of market uncertainty due to Covid- 19.
As a result, average prime gross rents have remained unchanged since January 2020, measuring $972/sqm ($829/sqm net face) however prime incentives have risen to average 26.3% as at July 2020, up from 21.3% in January.
The deal at 53 Berry Street follows recent transactions in North Sydney including Dexus’ sale of 60 Miller Street for $273m in early November and the sale of 2 Elizabeth Plaza for $127m in March, both much larger buildings. The $450m sale of the 50% interest in 101 Miller Street by Nuveen is also expected to be finalised this year.
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