Restaurant and bar in historic Sydney office tower tipped to fetch $6 million
A restaurant and nightclub in one of Sydney’s grand old bank buildings is expected to sell for more than $6 million when it goes to auction in September.
The art deco property at 16 O’Connell Street has 706 square metres over three levels and a basement.
The space is occupied by The Carter, a hip hop-themed restaurant, bar and nightclub inspired by Beyoncé and husband Jay Z. The tenant has plans to further refurbish the venue through a $350,000 project.
The space has many surviving elements of the former banking chambers. Photo: Supplied
The former bank’s private chambers are now occupied by private booths and a marble bar, which are connected by a balcony overlooking the main bar downstairs.
The basement level is being used as the restaurant space, which features an open kitchen.
The property, which comes with a liquor license, was last purchased for $4.15 million in 2007 by local investors who are selling to divest the asset.
The tenant is allocating $350,000 for further refurbishment of the space. Photo: Supplied
The space has a history in the food-and-beverage industry – being formerly the home of Swine and Co restaurant – and has attracted investors active in that sector, Colliers International selling agent Jordan Lee said.
“Investors in that type of industry like it because it’s a unique area, there’s a lot happening in that area,” he said.
But owner occupiers would have to wait out another eight years, with the property on a 10-year lease with a five-year option. It earns a net annual income of about $312,000.
The building is heritage-listed and has been described as a “symbol of its time”. Photo: Supplied
The sale comes with bar and kitchen equipment, including air conditioning units, beer stations, fridges and storage cages – worth about $320,000.
The property will benefit from its location close to the entrance to the future Martin Place metro station on Hunter Street, between Castlereagh and Elizabeth streets, as well as the security provided by the lease covenant, Mr Lee said.
The Sydney metro project is scheduled for completion in 2024.
Built in 1940, the former Bank of NSW building is heritage listed and was Australia’s second highest building at 12 storeys when it was completed.
It was seen at the time as “one of the most striking (buildings) in the city in terms of design and detailing”, according to the heritage listing.
“While the entire interior was praised for its style, the banking chamber was singled out for its vaulted ceiling, lighting units, bronze doors and treatment of the mezzanine,” it wrote, noting that some of these elements have survived to this day.
“The building stands as (a) symbol of its time.”
The property, which is going to auction on September 20, is also being sold by Colliers International’s Harry Bui and Tom O’Neill.
