Chatswood RSL Club is seeking a joint venture partner for the $200 million redevelopment of its existing venue in the heart of the Chatswood CBD.
The north shore club lodged an application for the redevelopment of its 3,322sq m Victoria Avenue site for a new 18-storey commercial tower and club with Willoughby City Council in January.
Endeavour Property Advisory is assisting with the search for a joint venture partner to deliver the redevelopment of the club’s 3,322sq m Victoria Avenue site.
Chatswood RSL, whose current low-rise home is one of the few remaining underdeveloped major sites in the tightly held business district of Chatswood, joins a growing list of asset-rich clubs turning to development for extra income amid ever-tightening CBD real estate markets.
And with companies increasingly seeking quality office space outside the CBD amid record-low vacancies, the club is primed to capitalise on the site's Chatswood location with the suburb sitting at 3.7 per cent, one of the best-performing non-CBD markets in the country.
Endeavour Property Advisory managing director Andrew Gibbons said that with the site already generating interest from potential tenants, the club is committed to securing the highest and best use by going through a formal process to identify a joint venture partner.
“We’ve been approached by three potential parties in the last three months looking to pre-lease in Chatswood for up to 12,000 square metres per requirement,” Gibbons said.
“We know that tenant migration compounded with strong office leasing fundamentals, rising rents, declining incentives and low vacancy levels have created the economic conditions required to feasibly develop commercial office buildings.”
After settling on a multi-million-dollar deal with Guide Dogs Australia to purchase alternate digs across the road at 2-4 Thomas Street, the club plans to relocate during the redevelopment.
While redevelopment plans progress during the next two to three years, the club has leased the 2-4 Thomas Street building until it is ready to occupy during construction.