Office building in Sydney’s south sells for $4.5m in off-market deal

• The property consists of a 1,532sq m four-storey building with 1,010sq m of net lettable area and a car park on a 563sq m site
• It was purchased by an owner-occupier for $4.5 million from a private investor
• The buyer intends to occupy part of the property, while continuing to rent out the remainder

 An office building in Sydney’s south has sold to an owner-occupier in an off-market deal.

The property at 633 Princes Highway in Rockdale, known as the Leader Newspaper Building, consists of a 1,532sq m four-storey building with 1,010sq m of net lettable area and a car park on a 563sq m site.

It was purchased by an owner occupier for $4.5 million from a private investor in a deal negotiated by Knight Frank’s Demi Carigliano, Anthony Pirrottina, Alex Guilfoyle and commercial buyers’ agents Stephen Grant and Will Dawson of The Grant Group.

The office building is currently fully leased with tenants including Rockford College and Willow Realty, with staggered three to five-year leases and an annual rent of more than $150,000 per year.

Mr Carigliano said the buyer intended to occupy part of the building, while continuing to rent out the remainder.

“The buyer was attracted to the property largely due to the location,” he said.

“The building has excellent exposure to the busy Princes Highway and is situated opposite Rockdale Plaza.

“It is also just a minute walk to Rockdale train station, and has easy access to Sydney Airport, motorways and beaches.

“There is future upside to the property with development potential, as well as rental reversion.”

Mr Grant said:

"We specialise in representing businesses becoming owner-occupiers of commercial or industrial assets.

“633 Princes Highway in Rockdale provides $150,000 per annum of additional income from the existing tenants, assisting our client in servicing the asset's principal and interest repayments.

“This extra income from other tenants has reduced our client's overall cost of their previous rent per annum by 25% if paying principal and interest or 80% if they went on an interest-only loan.

“Now, they own the asset and will benefit from the asset's appreciation over the coming years."

The Rockdale property last sold for $3.21 million in 2021, demonstrating its growth history and capital appreciation over the past three years.