Offers around $6 million are expected for a 5.57 ha light industrial site at Russell Vale, formerly home to Seawind Catamarans.
The site includes two warehouses, a vacant warehouse of 5375sqm, and a newly constructed 3000sqm warehouse which is currently leased to Martifer Aluminium.
The sale of the site is being handled by Simon Kersten and Viktor Desovski of Colliers International, but there is an option available to take up a lease on the vacant warehouse, which also includes office space of 590sqm. The option to lease is being handled by Jarrod Hulse from the same office.
Mr Desovski said the York Place property was excellent value, with owner Richard Ward prepared to meet the market on sale or lease.
"There is enormous income and development potential," Mr Desovski said.
"This is affordable industrial accommodation suitable for a variety of occupiers from manufacturing, engineering or logistics.
"It is suitable for a corporate or transport tenant looking to consolidate a number of sites into a large distribution facility.
"There are also alternative uses available for truck servicing and mechanical engineering firms with a need for large power supply.
"It is one of the few rare industrial sites of this scale in the northern suburbs with close proximity to major road infrastructure."
Mr Desovski said the occupied warehouse was leased at $275,000 per annum and they are expecting around $80/sqm gross (plus GST) for the vacant warehouse and office.
The high Australian dollar, the departure of Seawind to Vietnam and the closure of various manufacturers linked to BlueScope led to a tumultuous time for the Illawarra's industrial market.
However, a recent Illawarra Property Council report found there had been a good take-up of vacant industrial space in a short period of time, with companies such as Nepean Conveyors, Southern Engineering Services, Asciano and Martifer among those to fill the void, with the Illawarra's existing skills base and loyal employees proving attractive to many companies already established in other parts of Australia.