Brewtown Newtown building offers rich potential

One agent describes it as one the most striking commercial properties he’s listed in 30 years in the real estate industry.

And now the building that houses popular inner city Sydney cafe Brewtown Newtown could be your striking commercial property, after its longtime owner put it on the market.

It’s been more than 20 years since the classic circa 1910 warehouse last sold, and plenty has happened within its four walls during that time.

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The owner bought it in the 1990s and lived in a studio apartment upstairs, while restoring and selling industrial-style antiques from a workshop on the ground level.

The Newtown warehouse building has a stunning cafe conversion.

But in recent years the property at 6-8 O’Connell St has become popular as the Brewtown Newtown cafe and eatery.

LJ Hooker Commercial agent Phil Scarlett says there are few retail properties like it in inner city Sydney.

“In 30 years it’s one of the nicest buildings I’ve seen,” Scarlett says.

The property also has an upstairs area, with part of it subleased to a graphic designer.

“It’s full of character, it’s rustic. Much of it is original, with the original staircase going to the first floor, and original floorboards, exposed brickwork and atrium roof. But it’s been totally updated.”

The property, which sits opposite the Newtown Hotel, has 390sqm of internal floorspace over two levels, and returns $169,000 in annual rent.

Brewtown currently has a five-year lease with a five-year option, which Scarlett says lends the property more to investors, though there is also likely to be interest from buyers who are prepared to wait before converting it into a grand home.

Brewtown Newtown has a five-year lease with a five-year option.

“It’s a rare property. It’s one of those ones that lends itself to someone living there down the track, but there is a 5+5-year lease on the property. It seems to be more long-term investors that like it. It’s got great potential for down the track,” Scarlett says.

Scarlett says there has been interest in the low $3 million range, which would reflect a yield of between 4% and 5%.

A fire recently damaged a small part of the property, pushing back its original auction date, but with repairs soon to be completed the building will now go to auction on Tuesday, December 11.