A 19-level commercial tower overlooking Darling Harbour and the new Barangaroo precinct has been listed for sale, unlocking an opportunity to undertake a premier residential development in one of Sydney’s most sought after locations.
Comprising 11,742sqm of A-grade office space, 140 Sussex Street is positioned on a 1,642sqm freehold parcel in the tightly held western precinct of the Sydney CBD.
CBRE’s Richard Butler, Josh Cullen, Mark Hansen and Sharon Yang have been appointed to sell the property, which also includes a historic warehouse tenanted by renowned eatery Kingsley’s Steakhouse.
Mr Butler said the property represented an outstanding investment opportunity in an unparalleled location.
“We expect sophisticated developers, both onshore and offshore, private and publically listed, to show strong interest in the site, with a view to unlock its potential with a mixed use or residential development,” Mr Butler said.
“Situated in one of Sydney’s most vibrant and accessible locations, 140 Sussex Street is a truly unique opportunity to acquire a significant footprint with the potential to develop a luxury residential development with sweeping views of the harbour.”
Mr Butler went on to say the property would capitalise on strong investment demand for residential development opportunities in prime CBD locations. The property holds scope to accommodate a high end residential development incorporating up to 208 apartments over 35 levels, subject to council approvals.
“The sale of 71 Macquarie Street and 1 Alfred Street – both in Circular Quay – demonstrate the demand for centrally positioned sites, with investment appetite particularly strong for those sites with redevelopment potential.”
The property benefits from a strategic position in close proximity to the core CBD shopping district, major rail, bus interchanges, cultural facilities and parklands, as well as Sydney’s vast food and beverage offering at the Darling Harbour entertainment precinct.
On the back of a record year, selling more than 3,000 apartments in Sydney during 2015, CBRE’s Residential Projects Executive Director, Justin Brown, said the property’s development potential would be a major selling factor.
“The shift to high-rise apartment living has accelerated, with developers responding to the growing demand from Sydneysiders for vertical villages and super-tall residential towers, most notably for quality residential apartments close to good amenity,” Mr Brown said.
“The number of Sydney residential towers completed or proposed since 2012 has already been greater than the whole preceding decade, however, a mismatch of supply vs demand continues amid constraints of being able to meet the excessive demand due to the shortage of suitable sites available for redevelopment.”
He added: “Leased to ING Bank until 2017, the timing at 140 Sussex Street is perfect for a developer to capitalise on this mismatch while navigating through council planning.”