Blog - Commercial
THE ICONIC BLUE BUILDING OF SURRY HILLS GIVEN NEW LIFE
The iconic blue building at 461 Cleveland Street and 24 Little Cleveland Street Surry Hills has recently sold after Auction for $3.6625 million to local investor Peter George.
At one stage known as ‘Meath House,’ this former grand residence was built in the mid1800s and was once home to the four-time mayor of Redfern, Patrick Stanley. It also bears another name being ‘Illoura’ meaning ‘pleasant place’ in aboriginal.
Now known as ‘Gracelands,’ the building is currently an operational and compliant 10-room/20 person boarding house with high ceilings, generous balconies, large ground floor lounge, plus dining, kitchen, laundry and bathroom facilities opening to a large open outdoor paved terrace with its own palm tree and parking for 4 cars off the rear lane.
Gracelands is the tallest and largest terrace house on Cleveland Street with Sydney Tower and CBD skyline views from the upper level only one block from Moore Park, and only 650 metres away from the soon-to-be fully operational Surry Hills Light Rail stop.
Sold as a ‘Going Concern’, at the time of sale, the property enjoyed a solid cash flow from the Boarding House, all on monthly licence agreements, with the cottage separately let at $750 per week. The property has flexibility for use as professional rooms, budget or student accommodation with potential for conversion into a boutique hotel (STCA) or for the owner-operator ‘Gracelands’ presents a ready-made business opportunity.
The land is zoned ‘B4 Mixed Uses’ to Cleveland Street and an ‘R1 Residential’ to the Little Cleveland Street cottage plus vacant land to the rear with a 1.25:1 FSR and a 9- metre height limit with obvious development potential. ‘Gracelands’ sits on a huge 455.3 sq metres of land and has over 52 squares of internal space within the grand terrace and rear cottage.
“461 Cleveland St, including the cottage at the back, sold at a rate of $9,810 per sqm,” stated Scot Roberton, Sales and Leasing agent at TGC Sydney Property. “The estimated net yield was around 3.95 per cent before acquisition costs.”
“Peter just liked the property with its landmark status and expansion potential for a further 230 sq metres of buildable area,” Robertson said, referring to the vacant land at the rear of the plot.
“Other buyers were looking at a mix of redevelopment options, student accommodation and expansion of the existing boarding house operation by a further 10 to 15 rooms. A couple of buyers were also considering running it for a while and then converting it back into a grand residence again, having in mind its huge land size,” Mr Robertson said.
“We had strong interest in the property, receiving over 90 enquiries and 10 requests for contracts with two bidders attending the auction. A number of the prospective buyers that didn’t turn up said they would buy it after it failed at auction, so it was satisfying to achieve a solid result for our client,” he said.
For more information contact Scot Robertson, Director Sales and Leasing at TGC.