A fully-leased mixed-use building situated on one of the largest land holdings in Surry Hills for sale.

The three-level property, situated on the corner of Crown and Campbell Streets at 285a Crown Street and known as Reservoir on Crown, is being sold by a fund managed by LaSalle Investment Management.

It will be taken to the market via an Expressions of Interest campaign run by Knight Frank agents Paul Roberts, Jonathan Vaughan, Tim Holtsbaum and Dominic Ong in conjunction with JLL agents Mitch Noonan, Luke Billiau, Sophie Tieman and James Aroney.

Reservoir on Crown, which was built in 1960 and redeveloped by Mirvac in 2009, has a total net lettable area of 4,727.6sq m and sits on a 3,058sq m site, one of the largest in Surry Hills.

The office component totals 3,671.4sq m over two floors, with tenants including The Commons and Intercom Software, while the retail component, which is occupied by tenants including The Winery by Gazebo, totals 1,056.2sq m. The property has 15 secure car parks.

Knight Frank’s Paul Roberts said investors would be drawn to the high-performing asset as it provided both security and growth, underpinned by a 100 per cent occupancy rate and a WALE over six years, with future development upside.

“It is multi-let to 11 high-quality tenants across a diverse range of industries, with annual fixed increases to provide growth in the income,” he said.

“The building has recently been future proofed, having undergone a recent capital expenditure program minimising future expenditure requirements.

“It offers value-add options for buyers too, including the potential for further rental reversion or the opportunity to subdivide the existing winery and café from the main building to sell to an owner-occupier or investor.

“With historically tight supply and a limited development pipeline in Surry Hills, there may also be an opportunity to strata subdivide the entire property, or take advantage of tangible development potential for a further two floors with an estimated 1,500 square metres of additional net lettable area.

“As one of the largest stand-alone buildings on one of the largest sites in Surry Hills, Reservoir on Crown may be well positioned to leverage the recent Council-led planning proposal on Oxford Street, with the immediate area also featuring buildings with greater heights and floor space ratios on smaller land parcels.”

JLL’s Mitch Noonan said Reservoir on Crown, situated on a prominent site, had long been known as the premier building in Sydney’s fringe market.

“Reservoir on Crown is underpinned by strong fundamentals including one of the largest sites in Surry Hills, exceptional build quality, protected views of the CBD and a wealth of on-site and precinct amenity, and these characteristics are reflected in its market performance.

“Fringe assets of this scale and quality are extremely rare, and are typically very tightly held by generational owners in Surry Hills, so we expect this asset will be very well received by investors looking to get exposure to the City Fringe market.”

Data from JLL Research shows Sydney’s fringe market has been one of the strongest performers in Australia, with an annual net face rental growth rate average of 5.9% per annum between 2012 and 2022.

Of the major fringe suburbs, Surry Hills is the first point of call for tenants, which is reflected in an annual net face rental growth rate of 8.5% per annum over the same 10-year period, making it the strongest performing office market in Australia, according to JLL Research.

The Expressions of Interest campaign for the property will close at 4pm on Thursday, May 26.

To request a copy of the Information Memorandum please contact one of the marketing agents via the contact details below.