Two creative studios in inner-west Newtown listed with an eye to self-managed super fund buyers

Two spaces in Sydney’s Newtown development Flourmill Studios have been listed for sale with an eye towards buyers who have self-managed super funds.

Rooms 301 and 206 at 3 Gladstone Street (pictured above) are being sold by Eric Lundberg from DB Property Surry Hills.

Both properties are currently leased and have a net yield of around 7%. Room 303 has an asking price of around $280,000, while 206 is asking $380,000.

The building was the winner of the Marrickville Council award for adaptive use of a heritage building.

The building is mainly tenanted or owner-occupied by creative industries. Room 206 is tenanted by a film editing company, and 303 is a talent agency.

Both leases are ending reasonably soon, which Lundberg says is beneficial for self-managed super fund buyers who could avoid paying GST on properties with an ongoing concern.

Lundberg sold all the current 47 stratas in the building, which was converted in 2007.

The building was originally called the Federal Flourmills and was designed by Sydney architects Nixon and Allen, according to the Baker and Confectioners’ Journal in 1907.

At its peak, The Mill was a 24-hour operation milling three types of wheat.

The Mill closed down in 1984 and was sold by Allied Mills Pty Ltd and converted to artists’ workshops.

Over the next 20 years The Mill was occupied by painters, sculptors, musicians, stained glass makers, dancers and other creative types.

The adjacent silos were subdivided from the site in 2002 and converted to residential apartments.

The building was developed by Podcorp and designed by architects Allen Jack + Cottier.

The conversion preserved the original timber columns and beams, loading-bay doors, historic fire doors and the remnants of the drive shafts, wheels and belts that once powered The Mill.

Lundberg says the yields on the studios are bolstered by strong capital growth given the scarcity of properties like these.