Sydney’s former ‘best budget accom’ sells for $14m
An award-winning youth hostel in Collaroy will be replaced in the long-term by a block of luxury apartments and shops.
The Sydney Beachouse YHA, along with its three-storey neighbour at 1 Alexander St, has just sold for $14.75 million.
The 2570sqm amalgamated block has been bought by property developers HCAP, which currently have $300 million worth of property under development, mostly on the east coast of Australia.
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The CEO of HCAP Developments is Steve Howell, who lives in Collaroy and knows its value.
“We’re excited to acquire this once in a generation site that offers such a large footprint of land, dual street frontage and sits just 50 metres from the lapping waves of Collaroy beach,” Howell says.
“My family lives in Collaroy and the site is as good as you get for large scale, luxury redevelopment along Sydney’s northern beaches.
“HCAP took a strategic and long-term view in acquiring the site and we see multiple options for luxury residential and commercial redevelopment, which we will work through over the next few years.”
In 2000, the hostel was awarded best budget accommodation by NSW Awards for Excellence in Tourism.
CBRE agent Toby Silk says the price achieved reflects the strength of the northern beaches market, which is currently undersupplied for quality development sites.
“Collaroy has become a highly sought-after market for both residential buyers and developers,” Silk says.
“The northern beaches has consistently experienced one of the highest clearance rates across the state, with house prices more than doubling since 2010 and the population increasing.
“A number of enquiries were driven by the significant holding income and high development upside, which is rare for available development sites in the local market.”
CBRE marketed the site in May and quoted more than $10 million for the consolidated blocks.
More than 270 inquiries were made on the level site, 31 contracts were requested and 15 offers were made.
The youth hostel consists of a 65-room hostel and pool.
1 Alexander St comprises five units and three stores including a cafe and a physiotherapist.
According to CoreLogic RP Data the Collaroy unit median price is $855,000 based on 124 sales, a figure that jumped more than 36% in three years.
This article from The Manly Daily was originally published as “Sydney Beachouse YHA sells for more than $14 million”.
