Cronulla property owners unite to sell block of flats for $38.2 million
JLL sells second amalgamated Gerrale Street site two years after major 2017 deal
SYDNEY, 24 October 2019 –30 individual owners of a block of flats have each walked away with a share of $38.2 million showcasing the upside attached to collective selling.
JLL’s Dylan McEvoy and Ben Hunter sold two three-storey red-brick residential blocks located at 37 Gerrale Street, Cronulla to Pitt Street Partners via an expressions-of-interest-campaign. The process generated interest from offshore groups, institutional developers, vertical retirement operators as well as builders and developers.
“Throughout the past 12 months we have noticed a change in buyer appetite from offshore to local buyers of premium development sites,” Mr Hunter said.
The amalgamated property has a combined site area of 1,746 sqm. Under the Sutherland Shire Councils LEP town planning scheme the subject property has a B3 Commercial Core zoning, 3:1 FSR and 30 metre height limit or 9 to10 storeys.
In February 2017, Mr McEvoy amalgamated four blocks of flats including 32 local owners located at 49-55 Gerrale street, Cronulla for $54 million dollars, just a block down from the latest property sale.
“37 Gerrale Street is billed as one of the best development opportunities in the Sutherland Shire’s coastal lifestyle capital. We are witnessing a renewed willingness from developers who are expressing a preference for well-located sites in strong demographic areas such as Cronulla.
“Cronulla is a well-established residential market which has experienced restricted supply of new projects being built, this combined a large and affluent population like the Shire has ensured premium real estate offers are in high demand.”
“This offering represents a rare scenario, it is almost unheard of to see a strata property of this scale offered in one line in such a prime location.
“Rising land prices, coupled with strong demand for a mix of use sites, have made this scenario more desirable given the premium for combined sales prices compared to individual unit sale prices and in this instance some owners almost doubled their money by amalgamating together.”
“This is the only beachside suburb in Sydney with a direct train line from the CBD and with the added benefits of lifestyle and amenity,” Mr McEvoy concluded.
The 30 two-bedroom apartments currently generate a substantial holding income of more than $700,000 gross per annum.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.