THE developer behind a six storey apartment development on Donald Street Nelson Bay has had to bide his time in what has been a grim market.
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The Woolworths store has been the only big construction, commercial or otherwise for the Nelson Bay CBD in 10 years.
“We’ve owned the property for a while but we feel the time is right,” Nelson Bay Developments director Silvano Frassetto said.
“There’s a fair bit of optimism in Nelson Bay now.”
Mr Frassetto said he bought 65-67 Donald Street in 2007 just months before the Global Financial Crisis.
“The market has only moved again in recent times,” he said.
Apartment construction and sales have been on an upward trend on the east coast.
Mr Frassetto said his apartments would help cater to that demand particularly for sea changers.
“For Sydney retirees their property values have gone up so they have the equity in their home to relocate into an apartment like these and still have money left over,” he said.
The Church Street site has sat dormant even longer, going back to 2000, when Milan Maruncic lodged plans for what was to be the Milan Towers.
Delays caused by financial pressures and development constraints meant by the time the council refused the development in 2006, Milan Towers had been redesigned numerous times to compete with newly arrived competitors like Cote D Azur, and Mr Maruncic was under significant pressure from his financiers. The former Sydney real estate agent turned Nelson Bay baker in 2012 lost a crucial legal challenge in the Supreme Court of Appeals after the council had again refused the plans.
Rod Salmon has pushed ahead with the site.
“It’s been on-sold four times,” he said.
“When we lodged the plans council said ‘are you actually going to build it’?
“The over-development that happened here through the 90s means the banks won’t lend to anyone, it’s on their black list. The second thing holding it back has been the five storey limit.”
Tomaree Business Chamber president Ryan Palmer said more residents would boost economic activity.
“We can’t be scared of height but we can’t go over the top either,” he said.
