Thirty red brick flats on prime Cronulla beach site expected to fetch $40M plus

The best remaining development site at Cronulla beach has finally hit the market and is expected to fetch more than $40 million.

Thirty old red brick flats, built in the 1950s, occupy the landmark site at 37 Gerrale Street, which is on the corner of Surf Road opposite cafes and shops.

The flats are expected to be replaced by a nine to 10 storey block containing luxury apartments above ground level shops.

The owners of of the flats have banded together to sell them in one line.

Expressions of interest have been called for by JLL agents Dylan McEvoy and Ben Hunter and close on June 27.

Mr McEvoy managed the sale of properties just around the corner at 49-51 and 55-57 Gerrale Street for $54 million in 2017.

The luxury Wavelength development is under construction on that amalgamated site.

The Sutherland Shire LEP (local environmental plan) allows development on 37 Gerrale Street of up to 30 metres, or nine to 10-storeys.

The 1746 square metre site, zoned B3 Commercial Core, includes street frontages to Surf Road and Surf Lane.

"The future of this site is a high-end mixed-use development," Mr McEvoy said.

"It has excellent public transport connectivity."

Mr McEvoy said the property could bring in $700,000 a year in rental income until construction started.

The agents said demand for new apartments in the area remained strong.

"The Cronulla market is continuing to attract empty nesters, families and young professionals," Mr McEvoy said.

"Cronulla is a very restricted area in terms of supply and as a result, strong prices are being achieved for new apartment development sites."

Mr Hunter said sentiment was much stronger now that the federal election was over, with "developers showing an openness to engage".

"We expect national and even international interest in the site, [but] the end product will be very much for locals," he said.