AN inner-city property with DA approval for 78 apartments has been listed as a mortgagee sale in Newcastle West.
The 1636 square metre block at 20 Denison Street is for sale via expressions of interest with a guide of $8 million.
Originally planned to be developed as the 19-level tower Novo, the sale includes DA approval for 78 luxury apartments and 235 square metres of retail area and 97 parking spaces.
Listing agent Matt Kearney from Commercial Collective said the property offered a rare opportunity to acquire a DA-approved mixed-use residential development in Newcastle's city fringe in proximity to Newcastle's waterfront precinct and Interchange.
Plans for the architecturally designed complex by TZG include nine one-bedroom, 62 two-bedroom, six three-bedroom and one four-bedroom apartments.
The agent said the property had attracted around 50 enquiries in the first week, with interest predominantly coming in from Sydney-based buyers.
"Certainly the market at the moment is very in tune to anything that looks distressed and there are a lot of buyers out there who are waiting for these types of products to come to market," Mr Kearney said.
"The favourable comments that we have received so far is the location of the property.
"Buyers are seeing it as a good build-to-rent market and as something that will be complementary to Dairy Farmers Towers when those apartments are completed."
The agent said the property offered a prime opportunity for development given its position 350 metres from the Newcastle Interchange and within close proximity to Newcastle Harbour's precinct of cafes, restaurants, hotels and the marina.
Mr Kearney said rising construction costs were likely to blame for the abandonment of the Novo development project.
"Construction prices are high at the moment which is the view of a lot of people and that is probably the reason this development didn't get out of the ground," he said.
"We have builders that are looking at it, we have developers and we also have high net worth individuals who are recognising that Newcastle is a really great place to put their money."
The property is listed with Commercial Collective alongside Xavier Rahme from CBRE Sydney.
Expressions of interest close on Thursday, May 11 at 4pm.
