Beachfront mixed-use building in Sydney’s La Perouse could fetch $12 million

The property is metres from Frenchmans Beach. Photo: Supplied

An iconic beachfront site in Sydney’s La Perouse that has been home to Danny’s Seafood restaurant for more than 30 years is on the market with a price guide of $12 million.
The freehold property at 1605 Anzac Parade has been listed for sale with Oxford Agency’s Daniel Marano, who also handled the property’s sale in 2014. Domain Group records indicate it last sold for $8.2 million.

As well as the restaurant and associated takeaway business, which occupy the first and second floors, the property includes three penthouse-style apartments on the top floor.

“The building is roughly 35 years old [and] the iconic Danny’s Seafood restaurant has been operating since then and leases level one, the ground-floor takeaway shop, all of the 17 secure undercover car spaces, plus one of the three two-bedroom penthouse apartments,” said Mr Marano.

Currently generating an annual income of $605,712, there is also the potential to redevelop the site in the long term, subject to council approval, according to Mr Marano.

“With the current three-year lease remaining plus a 10-year option, the type of interest we have had are from people looking for a long-term investment play, with future potential to redevelop the site. We are also receiving interest from purchasers looking at this as an investment with future ambitions to operate their own restaurant/function centre and short-term accommodation on the top floor,” he said.

The property has played host to the Danny’s Seafood restaurant for more than 30 years. Photo: Supplied

The view from one of the apartments. Photo: Supplied

The 1613-square-metre site occupies the corner of Anzac Parade and Endeavour Avenue and is a few metres from Frenchmans Beach.

Coastal market heating up

The listing comes as Sydney’s beachfront commercial market looks set to heat up, with two properties on the market in Bondi Beach.

The first, 134-138 Campbell Parade which last sold in 2017 for $18.25 million, has been put back on the market with development approval in place for a five-storey “shop-top” housing development, with 10 apartments and ground-floor retail.

Meanwhile a recently-completed block of 17 apartments at 1 Lamrock Avenue was listed last week and could fetch up to $40 million.

Mr Marano said the time was right for the owners of the La Perouse property to sell.

“The current owners are selling because they wish to diversify their current property portfolio. I believe it is a great time for sellers who have beachside blocks as the supply for large mixed-use waterfronts is limited, the demand is high as it is rare and with the record low interest rates, plus volatility in the stock market, this ultimately has investors wanting a more reliable investment – therefore investors are looking to put their capital in bricks and mortar as they are providing solid returns and continued capital growth.”

Jack Needham | Mar 11, 2020