A great example of the old meeting the new!

So often these days we hear the terms urbanisation or modernisation, but what does that actually mean in terms of the buildings?

Well generally it all starts with the properties zoning which can free up many more uses than the properties former life. Commonly the properties are industrial or office buildings that have already been surrounded by residential development.

Take the example of 12 Power Street, Islington.

Once upon a time it was an office that controlled the admin for the large warehouse building next door.  The property is a two storey brick building with internal stairs and it included separate offices over the two floors.  There was a warehouse converted into a residence on the other side of the building and houses on the opposite side of the street.

The first thing for us to consider was the zoning.  This property had been re-zoned a couple of years prior from being Light Industrial to Low Density Residential.  This immediately led us in the direction of “highest and best use” which was for it to be converted into a residence.  The next thing we consider with older properties is if they are two storey and have timber floors, it may be impossible to convert into two units as the fire rating does not comply with modern standards when there are two separate ways to exit a property.  These are things may have an effect on the amount of buyers and ultimately the price they are willing to pay.

The buyer that we were able to secure for the property turned out to be keen for urbanisation and indeed is going to convert the property into residential use.  The floors have proven to be prohibitive for dual occupancy and therefore the new owner will occupy the property as a single residence.

The property was sold for $702,000 + GST and the vendors were thrilled with the result.  A result that would not have reached the same price had the zoning not been changed to suit the modern surrounds of this suburb.

A classic case of urbanisation!

Written by Jason Morris. Commercial/Industrial Specialist with Raine & Horne Commercial Newcastle.

 

 

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