Invest in Sydney’s nightlife: CBD basement poised for late-night fun listed for $5m+

It also has the bones “to make really, really good money”.

Vines, managing director of Retail Commercial Consultancy, said his basement listing’s rich history as a club and restaurant, helps position it for late-night fun thanks to the City of Sydney’s plans to extend trading hours to 24 hours.

He can’t quite get over the opportunity, an “incredibly rare” chance to invest and host Sydney’s movers and shakers as they pour out of their offices for drinks, lunch or dinner after its latest leaseholder, Italian eatery Fratelli Fresh Parlemonto shut their doors last year.

“It is next to impossible to buy a large sized hospitality venue in the CBD as they almost do not exist,” said Vines.

A retired doctor who invested in the property in 2016 is selling – with a price tag in excess of $5 million – after the decade-long tenant Fratelli Fresh did not extend their lease beyond July 2024.

Perched on the sub-ground level and sprawled across a massive 436 square metres, the property occupies the entire basement of the 12-storey William Bland Centre at Lot 1, 229 Macquarie Street.

The vacant 200-patron venue even has a private entrance for discreet entry. 

“Imagine if these walls could talk,” he muses.

The kitchen is already fitted out, but ready for an update, and comes with a liquor licence. In addition, with the newly opened Metro train station, Martin Place – home to tech, legal firms and bankers – is undergoing a revival, with the ASX, Macquarie Bank, and law firm HWL Ebsworth moving in.

“Everyone’s coming back to Martin Place; it’s the place to be,” said Vines.

The property’s proximity to the city centre and late-night trading opportunities make it an attractive consideration for investors.

The acquisition is zoned in a late-night management area for trade potentially until 5am.

This creates an opportunity to transform the venue – with its deep red carpet and exposed brick wall interior – into a bar, pub, sports venue, jazz bar or live music venue, subject to council approval, he added.

“You have to do something that people will like, but if you do that, you’ve got so much potential commercial opportunity literally on your doorstep. So, that means you have the potential to make really, really good money,” Vines said.

The venue’s rich history includes hosting The New Zealand Club as soon as the building’s construction was complete in 1961, before becoming The Nippon Club, a live entertainment venue known for its Japanese fare.

In 2013, it was leased to the Fratelli Fresh group run by New Zealand entrepreneur Barry McDonald, who transformed the former 65-person venue into a 200-patron restaurant. 

Behind the scenes in 2014 as the Fratelli Parlamento outlet was nearing its opening, a private equity firm purchased the property as an investment before selling it to the current owner, a retired doctor.

Fratelli Fresh Parlamento opened in 2015, the seventh venue for the Italian-eatery chain.

McDonald reportedly “revolutionised Sydney’s food scene in the early 2000s with Fratelli Fresh”, and the chain grew to include boutique groceries, a top-selling cookbook and a line of homewares. 

Fratelli Fresh’s following grew after celebrities – including George Clooney, Cate Blanchett and late actor Philip Seymour Hoffman – dined at one of the outlets in Walsh Bay.

By April 2016, Fratelli Fresh’s six diners were sold to Urban Purveyor Group, a rapidly expanding food and beverage operation behind Sake restaurant and the Bavarian Bier Cafe chain.

Last year, McDonald was reportedly accused of theft by former business partners.

Vines described the listing as an incredible opportunity to become an owner occupier in a late night management area.

“Owner-occupiers really get the chance to be able to buy empty properties, which means that if you run your own premises, you’re always beholden to the landlord. You are always at the landlord’s mercy for rent reviews, and ultimately, they’re always trying to get you to finance them to help them create wealth and get a strong income,” he said.

“If an owner can buy their own property, they secure their future. They secure their rental costs and add value, control the future of their premises, and then ultimately, can potentially sell the property for a lot more money in the future. So, there’s multiple positive things about owning your own property.”