Continuing the city fringe frenzy, the Dry Dock Hotel in Balmain has been listed for sale.
Claiming a title of Balmain’s oldest licensed hotel, built 1857, the Dry Dock is adjacent to the Balmain Ferry terminal and Mort Bray Park, and popular with city workers commuting home to the peninsular.
Set on a 645sqm corner site, with two generous street frontages, it offers a welcoming, old-school bar, bistro and gaming with 12 machines, under a midnight liquor licence.
Its significant footprint provides opportunity for scale, and alternate-use options offer upside in subdivision or redevelopment (STCA).
Marketing literature suggests “a veritable blank canvas” for an incoming operator that would respond favourably to an increased focus on its dining operation.
Previously operated by Pelathon, it was purchased by Michael Patterson in 2014, who says the timing is right to pass the baton.
“We’ve received several unsolicited offers to buy the hotel over the last 12 months, and in light of recent sales in the area, thought it was prudent to engage HTL Property to run an on-market campaign to ensure the market was truly tested,” offered Patterson.
Sydney has recently seen a spate of CBD fringe transactions, such as the Laundys buying Redfern’s Woolpack Hotel, Ray Reilly buying the Balmain’s London Hotel, Wayne Group buying O’Malleys in Kings Cross and Ashton Waugh buying the Newhampton, and sale of Surry Hills’ Hotel Hollywood.
The Dry Dock is seeking sale price of $7.5 million, although Patterson is reportedly open to a lease to the right tenant.
It is being marketed by HTL Property’s Blake Edwards and Sam Handy, in conjunction with Cabmon Commercial Property’s Peter Seeto.
Agents suggest the asset’s alternate mixed-use development possibilities, as seen in the residential redevelopment of the former William Wallace Hotel, will draw interest from a range of buyer profiles, including developers and investors.
“The business would undoubtedly benefit from an incoming purchaser activating a food and beverage proposition more in line with what is being offered elsewhere on the peninsular,” suggests Edwards.
The Dry Dock Hotel freehold going concern is being sold via Expressions of Interest, closing Thursday, 19 August.
