73 York Street snapped up for over $20 million

The sale demonstrates the continued strong interest from private investors in the Sydney CBD Western Corridor

6 June 2018, Sydney – A private Hong Kong investor has purchased 73 York Street for $22.5 million in an off-market deal negotiated by Knight Frank’s Jonathan Vaughan and John Bowie Wilson.

The deal comes shortly after the same private investor acquired 18-20 York Street, bringing their overall purchases in the Sydney CBD Western Corridor to over $50 million in six months. Both deals represented a rate of around $17,000 per square metre, and achieved yields in the region of 4%.

Situated on a site of 341 square metres, 73 York Street comprises approximately 1,281 square metres of net lettable set across five floors. Current tenants include Oscar Hunt Tailors, Mojo Record Bar, One Tea Lounge & Grill, and Migration Alliance.

According to Jonathan Vaughan, Knight Frank’s Director, Commercial Sales, NSW “73 York Street provides exactly the style of creative office accommodation that is in short supply and high demand for occupiers focussed towards generation Y and Z workforces, and we expect this will be positively reflected in the buildings investment return going forward.

The building is strategically located a short 300 metres from Wynyard Station, providing convenient access to a variety of transport links and a number of leading food and beverage operators”

John Bowie Wilson, Knight Frank’s Head of Commercial Sales, NSW continued, there has been increasing interest from private Asian investors in the CBD’s Western Corridor.

“We have been seeing a number of private Asian investors purchase buildings in the Western Corridor of the Sydney CBD, in particular York Street, as it offers the creative heritage accommodation that is performing particularly well in the market at the moment. This precinct of the CBD is also attractive to private investors as the buildings tend to be smaller in size, and therefore offer investors relatively good value acquisition opportunities.”

 

By: JAGONAL