Surry Hills City Crown Motel sells for $11.5m to apartment developer George Karageorge

The seedy Surry Hills City Crown Motel has sold for $11.5m to prolific property developer George Karageorge, who is planning to convert it into apartments.

The motel, which has 28 tiny rooms, is well located at 287-289 Crown St — next door to The Winery and popular Pieno cafe.

But many of the online reviews were far from flattering about the state of the rooms during its life as a motel, with one 2018 visitor saying “there are shxxholes then there is this place, which rates below that” and 27 respondents labelling it “terrible”.

It had a $10m guide at the recent auction, via IB Property’s Paul Grasso, Steffan Ippolito and Adam Droubi, with Damien Cooley presiding.

MORE:

$25m gelignite pool house sells

Sydney’s skinniest harbourfront up for sale

287 Crown St, Surry Hills, had a $10m price guide.

City views

With three property developers and two other high-net-worth investors registered, bidding started at $9m and rose in $100,000 increments to $10.5m, where it passed in.

RELATED:

Surry Hills motel has $10m guide

It sold 20 minutes later to Karageorge, who is already taking architects through the building.

Karageorge, the owner of Stasia, has done about 20 apartment projects of various sizes around Surry Hills.

He was arrested last year on suspicion of drink driving, but the criminal case was thrown out of court.

The new owner is already taking architects through the rooms.

The old motel is very well located.

The old motel, which has basement parking, was owned by investors who bought it for $8.8m in 2015.

Other advantages are the city views from some of the balconies and the northerly aspect. There’s also an existing cafe downstairs and a liquor licence.

The site previously had development approval for a new 42 boutique hotel by adding an additional three storeys, but that has now lapsed.