Two fully leased low-rise office blocks on the fringe of Auckland's CBD are being offered for sale by tender later this month as part of Bayleys' latest Total Property portfolio.
The larger of the two is a modern, 1980s three-storey office block at 22 Dundonald St in Eden Terrace, currently leased to five tenants, including the Auckland Co-Operative Taxi Society Ltd and the Naked Bus NZ Ltd. The property is producing net annual rental income of $243,270.
The other is a refurbished 1960s character building at 2 Roxburgh St, Newmarket. This is occupied by four tenants and is generating annual income of $232,970.
Both properties are being marketed by Alan Haydock and Cameron Melhuish, of Bayleys' Auckland office. Tenders close on the Dundonald St building on September 24 while tenders for the Roxburgh St property close on September 26.
Melhuish says both buildings have been refurbished and have popular mixed-use zoning, which allows for residential conversion, or a mixture of commercial and residential uses. There has also been extensive use of concrete in the building's construction and a mix of tenants which appeals to investors wanting to spread their risk.
Both buildings are also in the Auckland Grammar zone, increasing their appeal to new owners looking to go down the residential track in the future.
"Dundonald St is increasingly becoming a residential area and No. 22 will be beside the Newton Station for the proposed central city underground rail loop. The Roxburgh St property falls within the council's intensified mixed-use Newmarket Plan Change 196 zoning area which is expected to become operative soon. This will allow a basic building ratio of 3 to 1 instead of the current 2 to 1. Both buildings could have floors added to them under their existing zoning."
The larger standalone Eden Terrace building comprises 1063sq m of lettable area. It sits on a substantial site of 1104sq m and has 31 onsite car parks with a parking ratio that has made it a popular choice with tenants. "The building has been substantially refurbished internally as well as being modernised on the outside," says Haydock.
The ground floor comprises a boutique retail tenancy, 19 covered car parks - a further 12 parking spaces are located behind the building - and a secure storage facility. The two upper levels are in largely open plan office space, with some separate boardrooms or meeting rooms. All areas are fully air-conditioned.
The property features polished concrete floors and significant glazing on all sides of the building provide excellent natural light, says Melhuish.
The refurbished two-level 829 sq m building on a 437 sq m site in Roxburgh St comprises ground floor retail, office and storage space with more office space upstairs.
Haydock says the building has been meticulously refurbished to a high standard both externally and internally. A retail tenancy is located at the high-profile Roxburgh and Melrose St corner frontage, with floor-to-ceiling glazing to maximise exposure and light and concrete flooring with exposed beams and pillars. This is occupied by MyFlatPack as a showroom for the sale of Ikea merchandise - modern Scandinavian-style furniture and homeware imported to order.
Haydock says the neighbouring ground floor tenancy is finished to a similar high standard and while it is currently utilised as office accommodation, it could also be converted to retail or showroom space. Hulena Architects Ltd is the main office tenant and occupies most of the character office space on the first floor as well as storage space at ground level.
Haydock says there is on-going redevelopment of a number of surrounding buildings to character residential, office and retail uses. The area now accommodates a diverse range of businesses, including art galleries, architects, fabric boutiques, furniture and design stores and various food and beverage outlets.
"As the central Newmarket precinct continues to expand, this location is expected to be one of Auckland's major growth positions," he says.
'The anticipated adoption of Plan Change 196 will undoubtedly be a key driver of this growth, as it will allow more intensive development to occur and provide genuine added value potential for this property."By Colin Taylor Email Colin