In a sign of the continued strength of Sydney's North Shore commercial property market, and the ongoing post-COVID-19 recovery, a 2,626sqm office building in Pymble has sold for $17.3 million reflecting a low 6% yield. It marks the largest office investment transaction in the Pymble market since 2016.
Over 400 enquiries and 15 offers were generated for the asset at 3 Bridge Street, Pymble, in a campaign run by CI's Director Chris Veitch and Associate Director Nick Lowry, in conjunction with CBRE's Nicholas Heaton, Toby Silk and Aaron Arias. It was purchased by Sumner Capital and Trilogy Funds as a joint syndicate.
3 Bridge Street is a centrally located building within a ten-minute walk from Pymble Railway Station and retail amenities. The building is easily accessible to the major arterial intersection of Ryde Road, Pacific Highway and Lane Cove Road, allowing direct access to the Northern Beaches, Hornsby, Chatswood and North Ryde. The asset is currently tenanted by long term occupier UGL, which entered into a new 5+5 year lease in July 2020. The 3,000 sqm site has significant future development potential owing to a 3.5:1 FSR and 32.5m height limit under the current B7 Business Park zoning.
CI's Chris Veitch said, "Suburban office assets with growth and value-add potential remain a highly sought-after investment stream for local, interstate and international buyers. The number of under bidders on this campaign and active parties seeking comparable assets across the North Shore, is continuing to drive market conditions in favour of vendors. This a trend we expect to continue across 2021 as buyers seek to invest unsatisfied capital."
CI's Nick Lowry said, "We are continuing to witness increasing activity and confidence among investors and developers across the North Shore and broader Sydney market, following the challenges of COVID-19. The strong $17.3m result for 3 Bridge Street, Pymble reflects the determination of buyers to press ahead with delivering on their commercial real estate strategies."