Another two blocks of Sydney apartments have been listed for sale – this time in Marrickville and Coogee – amid ongoing demand for residential investment opportunities.
CBRE’s Peter Vines has been appointed to sell the Marrickville building, which comprises 46 studio and one-bedroom units at 11-13 Osgood Avenue.
In a separate campaign, a second block of 24 apartments at 326 Arden Street, Coogee has been listed for sale through CBRE’s Nick Heaton
The two campaigns follow close on the heels of the $10m+ sale of a block of apartments at 5 Pavilion Street, Queenscliff, which generated significant buyer interest and a much higher than expected auction result.
In that instance, 12 separate apartment owners banded together to offer the apartment block for sale.
In the case of Marrickville and Coogee the units in each block are held by single owners.
A recent similar sale involved 30 Clio Street and 50-52 Glencoe St, Sutherland. The 18, two-bedroom apartments sold for $8.85m after attracting over 150 enquiries, with 10 registered bidders at the auction.
“The ability to purchase an entire block of units, particularly of this size, is exceptionally rare with these types of assets often held in the same family for multiple generations,” said Mr Heaton, who negotiated the Queenscliff and Sutherland sales.
In the case of Coogee the property has been in the same family ownership for 85 years. Initially three terraces, the property was redeveloped in the 1970s as 24 apartments offering city skyline views from the upper levels and Coogee beach vistas from the ground floor apartments.
Expressions of Interest close August 4.
The other opportunity involves Marrickville, with interest in the block expected to be underpinned by the potential to renovate the units to increase the rentals. Alternatively, a purchaser could renovate the units and sell them off individually.
There is also an opportunity to incorporate individual garden areas to the ground floor units.
“Investors have the ability to create significant value by transforming all of the units into one-bedroom apartments to increase the rentals,” Mr Vines said.
“This will appeal to strata dealers who renovate and sell down whole unit blocks, and we believe there might also be potential interest from government agencies, affordable housing groups and other owner occupiers.”
Mr Vines noted that the ongoing gentrification of Marrickville, underpinned by its sought after inner city location and excellent transport links, would provide future upside for the incoming owner.
Expressions of Interest close August 25.
“The current volatility in the market, combined with low interest rates, is expected to drive considerable interest in the sale campaign, given the outlook for residential rentals and future capital growth,” Mr Vines added.