Vacant Cremorne office building sold OTP for record $50 million
Managing Director of CostaFox Developments, Michael Fox, has confirmed that the company has sold its new Cremorne office building pre-construction for a record $50 million.
The property, at 1-11 Gordon Street, was bought by Bayley Stuart Capital.
The 5,000 square metre building, designed by Fieldwork Architects, was set to be released to the market as 21 Strata offices, however Fox said “after our initial marketing teaser” we were approached by an investor who purchased the building as a whole.
The sale represents $10,000 per square metre, which Fox believes is a record for a vacant inner suburban office building.
The buyer will fund the construction and take on all the leasing risk.
Development Director of CostaFox Geno Hubay said "the striking design and cutting edge development according to Hubay by Fieldwork Architects, with interiors by Mim Design, was the key to the record sale price.
The heritage listed façade will be retained with a contemporary full glass curtain wall building above including a ground floor retail offering.
Fox also said that they had purchased another site in Gordon Street and were preparing plans for another 5,000 square metre Strata office building, the site of 974 square metre was recently purchased for $11.5 million.
