Four blocks of old flats in a line opposite Cronulla beach have been sold for $54 million, with the site expected to be redeveloped for nine storey apartments.
Owners will enjoy a windfall of between $1.5 and $2 million for each of the 32 one and two bedroom units in three-storey blocks at 49-51 and 55-57 Gerrale Street.
Dylan McEvoy, of JLL, who negotiated the collective sale for the two strata corporations, said the owners “were motivated to come together” by new strata laws, which allow for a block to be sold if 75 per cent of owners agree.
“At the end of the day, they all agreed to sell,” Mr McEvoy said.
“Fortunately, we didn’t have that issue because the price was such a good outcome and it was a short settlement.
“Some owners wouldn’t have been prepared to sell with other proposals put to them by other agents and developers, but they agreed to what we were able to offer.”
Tenants did not take kindly to the sale, kicking down a real estate sign in front front of the units.
“It cost us $1200, and they kicked it down in three or four days,” Mr McEvoy said.
Mr McEvoy said tenants would not be affected in the short term.
“Nothing will be happening there for three or four years,” he said.
“We want to keep the tenants there.”
Mr McEvoy said it would be several months before a development application was lodged.
John Thomas, chairman of the group of residents at 49-51 Gerrale Street said changes in Sutherland Shire’s 2015 local environmental plan (LEP) added significant value to the properties.
“A number of leading developers responded to our call for expressions of interest,” he said.
“As you can imagine, getting 32 owners across two properties, who have varying opinions and priorities, was a challenge.
“However, with implementation of the new strata reform laws and the help of JLL and the developer, we were able to pull together a compelling offer for all involved.”
Mr McEvoy said the group who agree to sell included owner-occupiers and investors, all of whom were shire residents.
“Each owner will take home a significantly higher sale price for their apartment than if sold individually,” he said.
“Most owners achieved two to three times the current market value of their apartments.”
Mr McEvoy said the 2921 square metre site presented as a strong opportunity for redevelopment, and had potential for a nine storey mixed-use development.
”JLL believes this sale represents one of the first group strata sales of this nature achieved in the NSW market, following changes to strata laws, which came into effect on November 30,” he said.
Mr McEvoy said the Cronulla property market was “quite mature and with a deep buyer base”.
“We will see an increase in developers in the location as they look outside other markets with a potential saturation of activity,” he said.
