Major Sydney commercial site to be converted to BTR apartments

Build-to-rent investment manager apt.Residential has purchased multi-storey commercial buildings at 1-3 Smail St, Ultimo, for $55m with plans to convert the buildings to rental apartments and studios. 

The 1-3 Smail St site comprises two separate historical brick buildings originally built in the early 1900s and subsequently amalgamated by Grace Brothers Ltd in 1949 and used for storage and warehousing purposes. 

The buildings are currently let to commercial tenants and have a net lettable area of 7,796sqm. apt.Residential managing director Matt Carolan said the company will now commence work on a development plan for the building that would honour the buildings’ heritage while maximising liveability for future residents. 

“The building’s heritage value to Ultimo and Sydney is important. By maintaining and restoring certain design elements, the site’s history will be celebrated in our development application,” Matt said. 

“The Smail Street site is close to Broadway Shopping Centre and within walking distance of Central Station, the city and two major universities. We think it is a prime location for high quality rental apartments and studios,” he said. 

In May 2024, apt.Residential announced a $1.5bn investment from Dutch pension fund PGGM. apt.Residential’s first Sydney project is the $280M mixed-use build-to-rent precinct in Meadowbank  comprising a range of 291 studio, one, two and three-bedroom apartments over four low-rise buildings. The Meadowbank development will be complemented by a retail and community precinct and provide much-needed supply to Sydney’s tight rental market. 

apt.Residential’s team has extensive experience in the Australian, UK and Southeast Asian residential markets and a substantial living sector track record across Build-to-Rent, PBSA, and institutional banking. 

"Through our projects, we are aiming to deliver a positive contribution to Australia’s housing shortage, with a goal of creating over 2,500 rental apartments,” Matt said.