Mixed-used building opposite Bondi Beach tipped to fetch $20 million-plus at auction
A mixed-used building on Bondi Beach’s famous waterfront strip is back on the market for the second time this year, with price expectations of more than $20 million.
The property, which has a Ben & Jerry’s ice cream shop and Ezy Mart convenience store as well as eight apartments above, was initially brought to market in March, just prior to the COVID-19 pandemic, but was subsequently withdrawn when the lockdowns came into force.
The property is now scheduled for auction with Colliers International’s Miron Solomons and Matt Pontey, alongside Steffan Ippolito, of I.B Property.
The site was purchased in 2017 for $18.25 million. All tenancy agreements have a demolition clause in place.
Mr Solomons and Mr Pontey sold a nearby property on Campbell Parade for $25.4 million in June.
“We tested the market with the sale of 286-294a Campbell Parade, North Bondi during Sydney’s lockdown, which confirmed a strong appetite for assets of this calibre,” Mr Solomons said.
“In addition to the usual high levels of interest we experienced, we also witnessed a flurry of capital usually reserved for other markets, states and even asset classes as investors across the country added Bondi to their wish list.”
The freehold block has an approved DA in place for a five-storey “shop-top” housing development, which would involve the demolition of existing buildings at the site and the partial retention of the Campbell Parade facade.
“[The site] has a valuable DA approval for a MHNDU-designed high-end development, should the buyer want to go down that route immediately or in the future,” Mr Pontey said.
“The value of this DA is remarkable and we have never seen another DA-approved site offered to the market on Campbell Parade.”
The site is producing a net annual income of $530,000, according to the agents.
The opportunity to secure a site with a DA already in place, as well as the property’s proximity to the beach and the Bondi market’s reputation for stability, has the three agents anticipating a high level of interest for the property.
“There is no better market in Australia than Bondi Beach, the opportunity to acquire a substantial beachfront asset with uninterrupted views of the beach is unique and special,” Mr Ippolito said.
134-138 Campbell Parade will be sold via auction on November 19, 2020.
