AN inner-city development site with DA approval for 78 apartments has sold in Newcastle West one month after it was listed as a mortgagee sale.
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The 1636 square metre block at 20 Denison Street sold for $8.1 million via expressions of interest campaign with Commercial Collective selling agents Matt Kearney and Adam Leacy and CBRE's Xavier Rahme and Nicholas Heaton.
The property was listed for sale with a guide of $8 million
Originally planned to be developed as the 19-level tower Novo, the sale included DA approval for 78 luxury residential apartments designed by TZG with ground-floor retail commercial space also available.
Selling agent Matt Kearney from Commercial Collective said the buyer is a residential developer from Western Sydney.
"This is their first project in Newcastle and they have done incredibly well down there in development," Mr Kearney said
"They are now looking for locations that have scope and potential for growth and they see Newcastle as a perfect fit.
"Their plan is to develop the site however, it is just picking the timing in the market and at this point in time, with interest rates where they are, they are prepared the hold the asset for a period of time until the demand is strong for residential apartments again in that area."
The agent said the listing drew 50 enquiries in the first week and resulted in eight offers.
"It is a quick sale but given that it was a mortgagee in possession they always draw strong interest and this one was no different," Mr Kearney said.
The agent said the DA approval and design appealed to buyers as well as the location.
"One of the key drivers for buyers was the property's close proximity to the Newcastle transport interchange," he said.
Mr Kearney said rising construction costs were likely to blame for the abandonment of the Novo development project.
"The previous owners had started selling off the plan but rising construction costs made the project unfeasible," he said.