Surry Hills restored warehouse pitched as ‘the best’ has $50m price guide
The site at 276 Devonshire St, Surry Hills, comprises a two-level original warehouse space with two levels of residential above.
An inner-city restored warehouse pitched as “the best” has hit the market with a $50m price guide.
The two commercial levels in the original warehouse at 276 Devonshire St, Surry Hills were redesigned by leading architects Bennett and Trimble and fully refurbished in 2012, with classic features such as the large industrial window openings with floor-to-ceiling glass, concrete and exposed herringbone floors remaining.
The Colliers agents Miron Solomons, Matt Pontey and James Girvan expect the site, especially with its two-level residential addition completed three years ago, to attract strong interest.
“This outstanding asset that pays homage to the history of the region is the best example of a
repositioned heritage warehouse in Surry Hills that we’ve seen to date,” Solomons said.
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An aerial picture shows a huge rooftop outdoor space containing a barbecue and entertainment area, while some of the apartments have extensive terraces.
Soaring ceilings are part of the appeal.
Pontey added: “Its location directly next door to the iconic Brett Whiteley Studio is testament to the property and the region’s creative roots, and the substantial amenities accessible throughout the CBD fringe makes it highly desirable for both residential and commercial tenants.”
Property records show that the warehouse, on an 896sqm block, last traded for $7.6m in 2007 when bought by a company owned by FiveX commercial property group boss Joshua Berger and his wife, Michelle Berger.
They fought a two-year battle with City of Sydney between 2015-17 to add the extra two residential floors.
They’d initially wanted to build 20 apartments, with an estimated cost of $6,882,022, but had to be satisfied with 13.
Classic warehouse facade.
The warehouse space has been restored for high-end commercial tenants.
The agents say the apartments could potentially be converted to strata title and sold off.
They currently comprise three two-bedders; seven one-bedders and three studios. All are generously sized with outdoor areas.
There is also a rooftop garden, barbecue and entertainment area overlooking Surry Hills.
Interest is expected from institutions, funds and high-net worth individuals, being close to light rail, Central Station, the CBD fringe and Tech Central precinct.
Girvan adds: “With cash rates holding this month and the advantageous nature and resilience of the CBD fringe market, we expect to witness strong levels of inquiry as investors see the relative safety of such a high-quality asset.”
With a net lettable area of about 2,231sqm and significant depreciation benefits, the property has a fully leased income of circa $2 million.
Current tenants include 3XN Architects, software company Dovetail and Provider Choice, a disability services and support organisation.
Expressions of interest close on May 17.
