A private fund advised by BlackRock lists asset for sale following strong development progress and rental growth in North Sydney. The 14-level office building at 2 Elizabeth Plaza in the thriving North Sydney CBD is being offered for sale, with price expectations upwards of $120 million.
Known as ‘2EP’, the asset is expected to generate significant interest as one of the few smaller assets offered to the market in close proximity to North Sydney’s Metro station and the Central Laneways nexus. 2EP is positioned within the inner circle of North Sydney CBD’s four key development pillars – the Sydney Metro, 1 Denison Street, 88 Walker Street and the recently completed 100 Mount Street.
The asset is offered for sale via exclusive agents Bevan Kenny and Chris Veitch of CI Australia, and Josh Cullen and Mark Hansen of Cushman and Wakefield. CI’s Bevan Kenny said, “North Sydney’s transformation is tangible now. Investors and occupiers can see the exciting direction the built environment is taking. The development cycle is pushing up market rents across the board and we expect this trajectory to continue as each development milestone is reached, culminating in the opening of the Sydney Metro in 2024. 2 Elizabeth Plaza is right in the centre of this activity, what we call the ‘inner circle’, being only 100m from the Metro Station entrance and forming part of the pedestrianised Central Laneways Precinct.”
Cushman & Wakefield’s Josh Cullen, said, “Investor demand for office assets across Sydney metro locations is exceptionally strong and North Sydney remains at the forefront. This is highlighted by recent asset sales in North Sydney involving domestic and global investors seeking to capitalise on strong leasing conditions, an increasing level of pre-commitments for major development projects and ongoing local infrastructure spend.”
2EP’s key building attributes make it a standout in the North Sydney market, namely its 157-vehicle basement car park, CBD views and mezzanine retail component. The latter, which is larger than most in many buildings of comparable size, has allowed BlackRock to create an appealing ‘eat street’ for tenants. Meanwhile, the building’s central location – on the corner of Brett Whiteley Place, Mount Street and Elizabeth Plaza - provides superb transport amenity and accessibility including covered pedestrian access into Greenwood Centre and North Sydney Station.
The broader transformation underway in North Sydney is gathering pace. The completion of Dexus’ 100 Mount Street is closely followed by advanced construction of Winten’s 1 Denison Street and Zurich’s new headquarters at 118 Mount Street. Demolition is also now complete of 86-88 Walker Street, set to be the site of a new 48 storey office and hotel development – making it North Sydney CBD’s tallest tower.
Meanwhile, the Central Laneways Precinct is a pedestrianised food and beverage retail offering that spans the site of the future Victoria Cross Metro Station, 1 Denison Street and Brett Whiteley Place. It is envisaged to become the focal point of North Sydney and knit these several new development schemes together.
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