Chatswood Disaster Recovery Centre Opportunity

JLL Capital Markets has been appointed to sell 26 Smith Street, Chatswood, in one of the Lower North Shore's highly sought-after industrial precincts.

The 5-storey building was initially constructed as a data centre in the early 1990s and repurposed in 2017 into a state-of-the-art Disaster Recovery Centre.

"The building's robust construction and immaculate internal infrastructure makes it a rare offering in the market," said JLL Capital Markets Director of Sales & Investments Harry Sullivan. "Purchasers will appreciate this property's inherent value and its diverse appeal.”.

He said the building features a high-spec fit-out, substantial power infrastructure and high-value plant and equipment.

With a gross lettable area (GLA) of 5,629.2 sqm and situated on a considerable freehold site of 5,644 sqm, 26 Smith Street presents significant development upside. With a favourable zoning of E4 - General Industrial and a special area floor space ratio (FSR) of 2:1, the property offers potential for expansion and redevelopment, creating a maximum potential gross floor area (GFA) of 11,288 sqm, subject to relevant council approvals.

JLL co-head of Sales & Investments NSW Gordon McFadyen said “The property offers great value add potential considering the quality and adaptability of the existing improvements as well as and being able to unlock additional floor area due to it being significantly underdeveloped. The building benefits greatly from ample floor-to-ceiling height slab to slab, providing the opportunity to further adapt the current floor plates or expand the existing footprint by utilising the additional GFA”.

The property offers a rare freehold opportunity of scale within one of the most tightly held precincts on Sydney’s Lower North Shore.

“26 Smith Street is one of only six freehold landholdings above 5,500 sqm in the precinct,” said co-head of JLL Sales & Investments Dylan McEvoy. “The Chatswood industrial precinct is completely land-constrained, which puts a strict limit on future supply within such a crucial service and employment hub. We believe this precinct will experience strong future growth as it services the rapidly growing population.”

Chatswood industrial precinct is home to major institutions such as Bunnings Warehouse, Woolworths, Tesla, and Kennards Self Storage, reflecting the high demand for industrial operations and urban services in the area.

The property also enjoys seamless connectivity to major arterial roads, including the M2 Motorway, M1 Motorway, Pacific Highway, and Boundary Street, facilitating easy access across Greater Sydney.

26 Smith Street Chatswood will be sold via an International Expressions of Interest process, closing at 3 pm (AEDT) on 11 April 2024.