Double Bay's Florida Dry Cleaners premises sells for $10.25 million

Florida Dry Cleaners have sold their Cross Street, Double Bay commercial premises for $10.25 million to an Asian investor.

The trophy asset, which also comprises five retail shops and a commercial office, has been owner occupied by the Gordon family who run the dry cleaners for over a generation.

It was sold under the hammer at a record 1.5% yield. There were nine bidders for the building which sold with a $31,000 per sqm land value.

The low rise potential development of the property at 10 Cross Street has a current net income of $162,829.50 per annum.

Womens clothing store Alex & Harry occupies one of the tenancies, along with the cafe Bar Lanziano.

There is an entitlement to utilise the laneway space.

Colliers International agents Miron Solomons, Matt Pontey and Nick Lumley secured the sale.

“This is a generational asset held by a private family linking the two main arteries of Double Bay; Knox and Cross Street,” said Solomons.

“We are expecting a great deal of demand for this asset, driven by the intrinsic value of freehold property in Sydney’s most prestigious waterside suburb as well as the property’s diverse income streams and future development potential.” 

Matt Pontey said Double Bay continues to drive demand for investors.

The five retail shops plus a first-floor commercial office have a net income of $162,829.50 per annum.

The flexible B2 Local Centre Zoning comes with a FSR of 2.5:1 and a height limit of 14.7 metres.

“Double Bay is buzzing with activity with the redevelopment of Double Bay and Cross Street carpark, as well as developments such as 1788 by SJD Property and The Hunter by Toga.

"The area has seen substantial development activity over the last 12 months, with developers competing for luxury residential sites along Cross Street.”

“This is an opportunity to buy a freehold asset with part ownership of the pedestrian thoroughfare linking Double Bay’s two iconic retail streets, Cross & Knox Street.”

Solomon's and Pontey sold the neighbouring property 12 Cross Street, in 2018 to the Hong Kong media family, the Ma’s, achieving a then record yield of 1.8% return.