Two adjacent properties on a site with development upside in North Sydney CBD up for sale

14 February 2024

Two adjacent commercial properties – an office and retail investment, plus a DA- approved site – directly opposite from the Victoria Cross Metro station in the heart of North Sydney’s CBD are being taken to the market.

The properties consist of 116 Miller Street and 173 Pacific Highway, which occupy a site totalling 2,304sq m.

116 Miller Street is an eight-storey A-Grade office and retail building with retail space on the ground floor and seven levels of office space above.

The fully refurbished property, which has 10.098sq m of net lettable area, is occupied by blue-chip tenants including ANZ Bank and Commonwealth Bank of Australia. It features large floor plates, excellent natural light, and district views from the upper levels.

173 Pacific Highway is a vacant four-storey boutique commercial office building that was previously occupied by long-term anchor tenant Australian Catholic University.

It is now a development site, with development approval for an additional 10,000sq m of office space, or alternatively, it is considered ripe for a build-to-rent scheme, with plans already drawn up, subject to council approval.

The assets are being taken to the market via an Expressions of Interest campaign run by Knight Frank agents Dominic Ong, Paul Roberts, Linda Zhu and Will Brassil on behalf of the vendor Maville Bay Pty Ltd.

Price expectations are $110m+.

Mr. Ong said the property offered investors an opportunity to acquire commercial assets with attractive diversified income at 116 Miller Street and value-enhancement initiatives for both buildings, all underpinned by future development potential.

“These assets have a history of strong occupancy by long-term tenants,” he said. “116 Miller Street is 66.4% leased to diversified and blue-chip assets, and there is an excellent opportunity to capture higher market rents on lease expiries, with a WALE of 1.38 years by income.

The estimated fully leased net income for 116 Miller Street is $9.35M* p.a, with strong rental growth history and prospects.

“173 Pacific Highway is now fully vacant and offers investors the ability to reposition through refurbishment from a secondary grade asset to an A Grade asset or to undertake the approved development on the site.

“We believe a build-to-rent development would also suit the site at 173 Pacific Highway, with an indicative Build-to Rent scheme having been prepared by architects Woods Bagot for 142 apartments and 12,090 sqm of residential and retail GFA, subject to council approval.

“Opportunities to purchase freehold properties in North Sydney don’t come along very often, particularly in a location like this, directly opposite the new Victoria Cross Metro station due for completion this year, and with access to existing transport at North Sydney train station.

“As a result, we expect strong demand.”

Premier retail and other amenity is readily available within neighbouring Northpoint Tower, Greenwood Plaza, and Vibe Hotel. 116 Miller Street is also on the doorstep to the master-planned Miller Place – a future 7,450 sqm public plaza which reinforce Miller Street as the main civic spine of North Sydney.

Mr. Roberts said North Sydney will see an unrivalled revitalisation driven by multi-billion-dollar government infrastructure spending, and mixed-use development projects, along with the migration of major new tech and corporate tenants.

The Expressions of Interest campaign for the property will close at 4pm (AEDT) on Wednesday, March 20.