Five years, three planning proposals and now Marriott: Deicorp's Crows Nest project gathers momentum

It took five years, three planning proposals and a lengthy battle through the planning system for Deicorp to get its first Lower North Shore project off the ground.

Now, with construction underway at Falcon & Alexander in Crows Nest, the developer is starting to see the rewards of its persistence.

Earlier this year, the $640 million project set a new benchmark for the suburb with an $11.6 million apartment sale. Deicorp has now followed that by securing Marriott International and hotel operator Trilogy Hotels to bring Courtyard by Marriott back to Sydney, with the brand to anchor the hospitality component of the development at the Five Ways intersection.

Getting to this point was anything but straightforward.

Deicorp acquired the prominent site, bordered by Pacific Highway, Falcon Street and Alexander Street, in 2019 and initially pursued a 36-storey mixed-use tower comprising 310 apartments.

That proposal was withdrawn in September 2020. A revised 19-storey scheme with 233 apartments followed later that year, but was rejected by North Sydney Council and subsequently unsuccessful at a State Government rezoning review in 2021.

Deicorp returned for a third attempt in January 2022, this time proposing a 16-storey development with 129 apartments. North Sydney Council again refused to support the proposal, but the developer successfully pursued a rezoning review through the State Government.

The planning controls were finally gazetted in December 2023, more than four years after Deicorp acquired the site. As Apartments.com.au reported at the time, it was third time lucky for the developer, although there was still another significant approval to secure.

Deicorp subsequently lodged a State Significant Development Application in April 2024 for a revised 22-storey scheme. Despite receiving a recommendation for approval from the NSW Department of Planning, the application was referred to the Independent Planning Commission following objections from North Sydney Council.

The Commission approved the project in December 2024, clearing the way for Deicorp to finally move towards construction.

At the time, Deicorp founder Fouad Deiri OAM said the lengthy process demonstrated the difficulties developers faced bringing new housing to market in Sydney.

The project has since evolved into a major mixed-use development combining apartments, retail and hospitality, with the latest milestone bringing an internationally recognised hotel brand to the Crows Nest site.

The hotel signing follows another significant result earlier this year, when an Upper North Shore family paid $11.6 million to amalgamate two apartments on the 21st level into a single 333 sqm residence.

The four-bedroom home will include two living areas, a study and views across the Harbour Bridge, Barangaroo and Sydney Harbour through to the Heads.

The sale established a new apartment price record for Crows Nest, demonstrating the level of demand at the upper end of the market for larger residences in the increasingly connected suburb.

The latest announcement will see Courtyard by Marriott Sydney Crows Nest occupy the first three levels of Falcon & Alexander, with 100 guest rooms, food and beverage venues, a bar, meeting spaces and fitness facilities.

Hotel guests will enter through a dedicated lobby on Pacific Highway, while residents will have their own entrance from Alexander Street.

"Crows Nest has always attracted people who value connectivity, great food and a strong village atmosphere," Deiri said.

"Bringing Courtyard by Marriott back to Sydney as part of Falcon & Alexander is a natural fit for this location."

Tristan Cooper, Marriott International's Director of Hotel Development for Australia, New Zealand and the Pacific, described the brand's return to Sydney as a significant milestone.

Trilogy Hotels CEO Scott Boyes said the improved transport connections across the Lower North Shore were helping strengthen the area's appeal to hotel operators.

"Sydney's North Shore is rapidly becoming a vibrant extension of the CBD through new transport connections, and this hotel will deliver for our owners, create opportunities for our teams, and provide experiences for guests in one of Sydney's most dynamic emerging precincts," Boyes said.

It is Deicorp's second partnership with Trilogy and Marriott this year, following the announcement of Sydney's first AC by Marriott hotel at its Hyde Metropolitan development on Liverpool Street.

For Falcon & Alexander residents, the hotel will form part of a broader mixed-use precinct, with ground-floor retail and dining also planned.

Stephen Cox of TURNER, the project's architect, said the hotel would enhance the lifestyle offering for residents while opening the development to the wider community.

Falcon & Alexander comprises 212 one-, two- and three-bedroom apartments. The building has been designed around a central lightwell to draw natural light into the apartments, with floor-to-ceiling glazing capturing views across the harbour and city.

Residents will have access to a rooftop retreat with barbecues and flexible fitness areas, along with a private dining room, kitchen, lounge and outdoor terrace.

The site is a short walk from Crows Nest Metro station and the restaurants and cafés along Willoughby Road.

Construction is underway, with the building expected to complete in late 2027.