CBRE’s Lewis Tong, who negotiated the off-market Tea House sale alongside colleagues Mark Wizel, Josh Rutman and Scott Orchard, said the property had attracted interest from several parties, a sign of positive sentiment for office buildings below $100 million.
Eu Ming Lim of Thomson Geer acted as the vendor’s legal representative.
The CostaFox partnership was established when Mr Fox parted ways with five years ago with former development partner Paul Little, with whom he had established Little Projects.
Mr Fox and his development director Geno Hubay have launched a global search for an architect to work on the building’s restoration. Developers have shown themselves increasingly willing in recent months to invest into historical buildings as a source of fresh office space, such as the Liberman-family backed Impact Investment Group rejuvenation of a dilapidated 100-year-old wool store warehouse in Kensington.
With a footprint of around 600 square metres on a site of nearly 3000 square metres, there is plenty of potential for further redevelopment around the heritage asset, if it could win approval from planning authorities.
“It’s one we bought knowing it’s sensitive,” Mr Fox said. “There may be no further opportunity for development but it stacks up as refurbished office building in its own right.”
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Photo by Elke Meitzel