Former gourmet food hall in Rozelle being sold with plans for 16 apartments
The former site of food and homeware retailer The Essential Ingredient in Sydney’s inner west could be sold and converted into apartments.
The 1325-square-metre site at 731-735 Darling Street, Rozelle, has been listed on the market and could sell for more than $8 million, according to selling agents Colliers International.
One of the biggest land holdings on Darling Street, the property was the former home of The Essential Ingredient for the past nine years. The brand has seven stores across NSW, Victoria and the ACT.
The retailer moved out of the premises in January 2019 as approval was secured for a four-storey development with 16 apartments and 370 square metres of retail space on the ground floor. The façade of the building, a local heritage item, would be retained.
A company controlled by property developer IPM Group owns the site, which has a single-storey building with 650 square metres of retail space and a rear car park.
The owners purchased the property for $6.5 million in 2016.
Colliers International’s James Cowan said the vendors decided to sell as they had received a “high volume” of unsolicited interest from developers, owner-occupiers and investors.
“This is not surprising considering the rare site envelope and success of local retailers, childcare centres, supermarkets and fast-food outlets such as Harris Farm Markets Drummoyne, the new Woolworths Metro only 550 metres away and recent purchase of the 3 Weeds Hotel by Justin Hemmes of Merivale just 350 metres away,” he said.
Mr Cowan said he believed “the highest and best use” would be for retail occupation or investment rather than the approved development, as retail was “exceptionally strong” in the area. Another option for buyers would be to hold for a few years and then develop, or modify the plans to allow for a supermarket on the ground floor with apartments above.
“Due to the lack of available land supply, corner positioning and excellent exposure, we accordingly believe there is a compelling argument to suggest an alternate user such as a supermarket, medical, fitness or showroom may be prepared to pay a higher price than a residential developer.”
Co-agent Joseph George said the DA took three years of planning and will be valuable to developers due to the difficulty in obtaining approval.
He added that the area was in need of new dwellings.
“Balmain and Rozelle are undersupplied residential locations, with only 400 new apartments added to the suburbs collectively over the past four years,” he said.
“Adding to this, the only pipeline developments undergoing planning assessment is that of the much publicised and heavily debated Balmain Leagues Club which has been over 10 years in the making.”
Down the road, a 424-square-metre site at 673-677 Darling Street is tipped to sell for about $5 million, while Balmain Post Office at 366B Darling Street sold for $4 million in April.
