Developer Greenlit for $60m Boutique Apartment Project

A Sydney-based developer has broken ground on a $60-million apartment project in Marrickville, in the city’s inner west, after winning approval from the Inner West Council.

Astute Property Group, led by managing director Fady Rizk, has been granted approval to build a five-storey, boutique apartment project at 265-273 Illawarra Road.

The project will offer 43 apartments in a mix of one, two, and three-bedroom configurations at 265-273 Illawarra Road.

Rizk told The Urban Developer construction had now begun on the 1500sq m site with half of the apartments launched to market for its backer to kick in the next tranche of funding. Construction is expected to be completed at the end of 2023.

“The main challenge will be the timing of the launch coinciding with current negative sentiment around interest rates, inflation and the like,” Rizk said.

“However, we feel that we are launching a high-quality boutique development, located in the best position in Marrickville with limited competing supply.

“These points, together with the local track record we have, will be the key drivers to this development’s success.”

▲ Astute submitted a S4.55 amendment in April 2022 which was approved in July 2022. Image: Nearmap

Astute, established more than two decades ago in Sydney, specialises in the high-end multi-residential sector with the vast majority of its previous projects in the city’s inner west, city fringe and eastern suburbs.

Rizk said the group remained bullish in its approach to new sites and applications, supported by its business model—acting as both developer and builder—and specialising in high quality and technically difficult constructions.

Rizk said the model was designed to cope with difficult market conditions, including the current climate with many developers struggling to find affordable labour, materials and builders. 

After delivering Kindred, a 40-apartment project on Marrickville Road, Astute doubled down with its latest project Mosaic—designed by the developer’s longstanding design team, Benson McCormack Architects and Axlund and Goldstein Interiors.

“We always strive to target the best sites in the best suburbs,” Rizk said.

“Proximity to transport, especially trains, is paramount. So too is proximity to amenities, shopping, education. With Mosaic Marrickville, we feel it ticks every one of our criteria. Additionally, targeting suburbs with limited supply ensures we do not compete within a saturated market.”

Rizk said it would target owner-occupiers and investors, with average prices within the development hovering around $1.3 million, with one-bedroom apartments expected to start from $820,000 and larger apartments priced from $1.8 million. 

▲ Renders of the project Astute has now begun work on. Image: Benson McCormack Architects

The developer spent the last 12 months modifying its existing development application, reducing the number of apartments to increase study and living space and accommodating people who continue to work from home.

Apartment prices in Sydney’s “metro suburb” of Marrickville, 7km from the CBD, have jumped 10.6 per cent in the past 12 months to a median of $828,000.

To accommodate owner-occupiers, the building will have just four to five apartments per floor with larger three-bedroom apartments including features such as a bar area off the kitchen, a separate laundry and large studies for those working from home. 

The fourth level of the apartment building will feature a residents’ retreat with a 200sq m private residential space containing a communal garden. There will also be four ground floor retail tenancies totalling 410 square metres.

Marrickville has been going through a revival in recent years with strong housing demand and a shortage of new supply in the area guaranteeing apartment sales.

Bolstering development in the area is its proximity to stations at Marrickville and Sydenham on the new metro line.

The rise of development around or over Sydney Metro stations leads the next wave of inner-city development for Sydney, offering developers access to scarce prime sites.