Cronulla property owners unite to sell block of flats for $38.2 million

The 30 individual owners of two blocks of Cronulla flats have united to sell their apartments in one line for $38.2 million.

The two, three-storey red-brick residential buildings, at 37 Gerrale Street, were bought by Pitt Street Real Estate Partners, a subsidiary of Washington H. Soul Pattinson.

JLL’s Dylan McEvoy and Ben Hunter made the sale.  

The amalgamated property has a combined site area of 1,746 square metres.

Under the Sutherland Shire Councils LEP town planning scheme the subject property has a B3 Commercial Core zoning, 3:1 FSR and 30 metre height limit or nine to 10 storeys.

In February 2017, McEvoy amalgamated four blocks of flats including 32 local owners located at 49-55 Gerrale street, Cronulla for $54 million dollars, just a block down from the latest property sale.

“Cronulla is a well-established residential market which has experienced restricted supply of new projects being built, this combined a large and affluent population like the Shire has ensured premium real estate offers are in high demand,” McEvoy said.

“Rising land prices, coupled with strong demand for a mix of use sites, have made this scenario more desirable given the premium for combined sales prices compared to individual unit sale prices and in this instance some owners almost doubled their money by amalgamating together.” 

The 30 two-bedroom apartments currently generate a substantial holding income of more than $700,000 gross per annum.

“Throughout the past 12 months we have noticed a change in buyer appetite from offshore to local buyers of premium development sites,” Hunter said.