The 99-year leasehold of the commercial space at 88 Cumberland St, The Rocks has been sold for $56 million. Neighbouring the controversial Sirius building, which is possibly slated for a high end apartments re-development, 88 Cumberland Street is a mixed-use commercial/residential building.
The purchaser was Marks Henderson, a commercial property investment group founded in 2001 by Chris Marks and John Henderson, both of Victoria. The private company prefers buildings with quirk and character and specialises in identifying and acquiring prime real estate in off-market transactions, in turn building a portfolio with recurrent cash flow and strategic value-add opportunities.
The property is unusual in that it has two strata plans separating the commercial from the residential space. It is a six-level building comprising ground floor retail area, four levels of office space and 14 car spaces. The building was completed in 1991 and refurbished in late 2002.
In May 1992 the top level was strata-subdivided into four strata-leasehold, two-bedroom plus study penthouse apartments, each with a car space. This residential section of the building was not included in the sale. The freehold remains the property of the NSW Government statutory authority, Place Management NSW.
The property last traded at $26 million in 2014 and is anchored by a NSW Government tenant, Destination NSW.