Potts Point apartment owners band together to sell their neighbouring blocks

Michael Khouri, JLL’s director of metropolitan sales & investments NSW, said that the owners saw the opportunity to extract greater value from the site, particularly given the demand for luxury apartments in the rapidly gentrifying Potts Point area, describing the listing as a “once-in-a-lifetime opportunity”. 

“The site offers favourable planning controls and offers developers the opportunity to build a legacy landmark on one of Sydney’s most prestigious streets, joining other luxury residential buildings along Macleay Street like Winten Group’s Pomeroy, where an apartment on level one sold last year for $10.05 million,” Mr Khouri said.

“This is a substantial opportunity in one of Sydney’s most desirable precincts which is fielding growing demand for high-end properties from overseas investors, empty nesters, cashed-up downsizers and high-net-worth individuals,” said Ben Hunter, JLL’s head of metropolitan sales & investments NSW, who is sharing the listing with Mr Khouri. 

The five-storey Macleay Street building, the larger of the two sites, stands on 939.6 square metres and is zoned B4 mixed use.

The building, known as AXUS Potts Point, contains 34 apartments and seven retail spaces, four of which have street frontage. Current tenants include hair salons, a beautician and day spa, and a liquor store and deli.

The smaller Hughes Street site is zoned R1 general residential and currently contains nine apartments across three levels.

Mr Khouri would not be drawn on a price guide for the combined block, but cited the separate 2017 sales of 20-26 Cross Street and nearby 28-34 Cross Street, Double Bay, to Chinese-backed developer SJD for $55 million and $45 million as an example of the price that development sites in Sydney’s east could generate.

SJD has subsequently launched a boutique apartment development, named 1788, at the 20-26 Cross Street site, with a three-bedroom penthouse in the building selling for $10.5 million at launch.