Historic Harrington Street building on the market in The Rocks
A historic building at The Rocks in Sydney has hit the market as boutique fund manager Sumner Capital winds up a fund for one of its Swiss-based clients.
The leasehold interest in the 117 Harrington Street is the last real estate asset in Australia held for the client.
The commercial property, which could fetch $19 million or more, is held through a 99-year ground lease to the Sydney Harbour Foreshore Authority.
Major tenants include CCUBE, Iris Sydney and Artazan Property Group.
CBRE’s Kenny Duncanson and Harry George have been appointed to broker the six-level, heritage-listed building. It was refurbished in 2007 and offers a net lettable area of 1404 square metres.
“The building’s strong investment fundamentals and diverse tenancy mix will appeal to both domestic and international buyers seeking to capitalise on tenant demand for well-located character buildings,” Mr Duncanson said.
“The property is strategically positioned within The Rocks, bordering Circular Quay, in a location set to benefit from major infrastructure projects such as the Sydney Light Rail, Sydney Metro, Circular Quay Ferry Wharf upgrade and Wynyard Station upgrade.”
Sumner is a busy player in the Sydney market. Four years ago it bought Pier 8 & 9 on the Walsh Bay waterfront for $8.25 million. Last year it sold the Walsh Bay office space for $90.5 million.
Elsewhere in Sydney it has refurbished and leased up 50 Miller Street, a North Sydney asset it owns jointly with Prime Super.
The layout of the Harrington Street building includes outdoor areas, a point of appeal for creative office occupants, according to Mr Duncanson. The building also offers rental upside, with the current lease expires occurring after the delivery of the Sydney Light Rail.
CBRE’s Mr George said the building’s potential for a strata subdivision and conversion to residential could also generate upside for the next owner.
“A conversion to a boutique hotel with a rooftop would be another possibility, subject to the relevant planning approvals,” he said.
