Sydney unit block sells, bringing total recent sales of this property type to nearly $19m

19 June 2024

Another unit block in Sydney has sold in a deal negotiated by Knight Frank, taking the agency’s total recent sales for the property type in the city to nearly $19 million.

An art deco block of four units 88 Francis Street in Bondi Beach, known as ‘The Pines’ sold for $6.9 million, equating to $1,7250,000 per unit prior to the close of an Expressions of Interest (EOI) campaign.

The property was purchased by an international investor purchaser from the Hersch Family, a deal negotiated by James Masselos, Adam Droubi and Demi Carigliano of Knight Frank.

The property sold on a .2.85% gross yield with the current income of $197,600. However, the total market gross income is estimated at 270,400 per annum, with potential for rental reversion.

The sale follows two other recent sales of Sydney unit blocks in deals negotiated by Knight Frank, which identified a trend whereby buyers are increasingly seeking this property type in the current market. An apartment block and two townhomes at 313 Bronte Road in Waverley recently sold in one line for $9.25 million, while a block of 4 apartments at 40 Victoria Street in Penshurst has sold for $2.55 million.

Mr. Masselos said the EOI campaign for the The Pines generated huge buyer interest, with over 175 enquiries.

“We continue to see strong market demand for unit blocks, with recent campaigns generating extremely robust enquiry levels, leading to several properties selling prior to the close of the campaign,” he said.

“For The Pines, we received widespread interest from local and out of area investors, builder/developers, high net worth families and land bankers.

“The blocks of units represented a prime residential investment opportunity in a blue-chip location, just a short stroll from the suburbs best retail, entertainment, lifestyle and transport amenity.

“Francis Street is one of Bondi Beach’s most desired streets, and Bondi Beach itself is just 650 metres away.

“For buyers, while location is key, the income associated with unit blocks is also a key factor, particularly in the current rental environment we’re experiencing in Australia, with rising rents and greater demand for housing than supply.”

Mr. Droubi said the block of four units in The Pines had two lock up garages and one open space and benefitted from DA approval to completely transform the block.

“These strata titled block has a very unique development approval for the demolition of internal structures and alternations and additions, while maintaining the external art deco facade,” he said.

“This includes a rooftop addition to create a double storey apartment, additional basement parking, and a car stacker.

“The approval includes new bathrooms, bedrooms and kitchens for each unit, as well as the addition of private open spaces for each.”

Knight Frank has another three unit blocks in Sydney listed for sale, worth a collective $20 million-plus including:

• A four-level block of 16 apartments on a 1,277sq m site at 5-7 Windsor Road in Merrylands is for sale in one line, with price expectations of $7 million and a potential rental income of more than $484,000. It is being taken to the market via an Expressions of Interest (EOI) campaign run by Knight Frank agents Adam Droubi and Jessen O’Sullivan in conjunction with Ray Fayad of Laing & Simmons in Parramatta.

• A block of 10 apartments at 1 Sparkes Lane in Camperdown is being taken to the market via an EOI campaign run by Demi Carigliano, Anthony Pirrottina and Adam Droubi or Knight Frank. Price expectations are in the early $7 million for the fully leased block of apartments that present ‘as new’ and have a potential rental income of more than $390,000.

• A block of 6 apartments at 3 Moore Street in Bondi is up for sale via an EOI campaign run by James Masselos, Adam Droubi and Demi Carigliano of Knight Frank. Price expectations are $7 million, with the block having a total market rent of more than $353,000.