A historical warehouse in Surry Hills converted into 38 apartments and seven penthouses with two floors of prestige retail, food and beverage operators.

Built in 1912 as a factory, No. 1 Lacey is a handsome heritage building in the heart of Surry Hills, a reminder of the area's vibrant rag trader past. The historical warehouse has a 1,549 sqm footplate over five levels plus basement. Rising from the top floor, a collection of new penthouses in a distinctive 21st century design have been conceived to perfectly offset the magnificent industrial structure below.

In the historical section of the building, each of the 38 warehouse apartments are designed by BKH to reveal and celebrate the incredible craftsmanship of the original architecture. Raw brick work, vast arched timber windows, dramatic high ceilings and striking wooden columns and beams - every element has been restored and transformed to become an integral part of this warmly appointed contemporary space. Bathrooms in elegant glazed Paris Metro tiling feature generous baths and top-of-the-line chrome fixtures. Joinery and cabinetry is immaculate throughout.

A five-storey central atrium references International Modernism and opens up to segue into the seven penthouses. These are set back from the brick parapet of the heritage warehouse to create a feeling of serenity and security. Their large, private rooftop terraces look over leafy Surry Hills and out to the iconic Sydney skyline. Inside, they are spacious and opulent, with generous layouts that evoke a sense of Parisian grandeur.

"Earlier in the year the Awards judges noted this project was exceptional, with the attention to detail and quality of the workmanship completing the package."

- Arthur Ilias, President, UDIA

"I have known and admired this landmark warehouse building for some time. It's a privilege to be taking it from last century, and moving into the future."

- Iain Halliday, Principal, BKH