A fully leased freehold seven-level office building with two additional levels of parking, generating more than $1 million a year in rent, has been put up for sale in the heart of Auckland's education precinct.
"This property at 98-100 Symonds St has a long-term tenant committed to the majority of the building until at least 2021," says Paul Hain of Bayleys Auckland, who is marketing it for sale by deadline private treaty, closing on April 11 unless it sells prior to the closing date.
"This is a hands-off passive investment opportunity with guaranteed annual rental growth and impressive credentials both from a building and tenant point of view," says Hain.
"It is in a proven location with strong long-term demand from all levels of tertiary users in the immediate vicinity. The prime tenant occupying much of the building is Global Education Group, one of New Zealand's largest private tertiary education providers."
More than 80 per cent of the income from the building, $816,734.60 per annum, is paid by the tenant, which took an initial 10-year lease from April 1, 2011.
The building has a total lettable floor area of about 4352sq m and is on a 2209sq m level site in two freehold titles on the eastern ridge of Symonds St. It is around 150 metres from Wakefield St and Whitaker Pl, and about 30m from the intersection with City Rd.
The property is elevated, with moderate city views mainly to the northeast, from the higher levels.
The front site, with frontage to Symonds St, is a sealed car park with access to the rear site main office.
It has a concrete column and beam structural frame, with concrete spandrel panels and aluminium framed, tinted windows. The building is serviced by two 13-person, 900kg passenger lifts and dual stairwell access within the building core.
There are men's and women's toilets and kitchen facilities on each office level.
Large window areas offer good natural light to all of the office levels. Each office floor is about 600sq m.
Hain says, "The ground floor of the circa-1982 building is accessed at street level from Symonds St, through glazed double automatic doors into a small tiled entrance lobby and lift foyer.
"The ground floor largely comprises a staff cafeteria with commercial kitchen facilities and a large theatre-style area to the rear.
"The ground floor and levels 1, 2, 4, 5 and 6 are leased to Global Education, which totally refurbished these floors in 2011. The company also has the use of 46 of the 89 car parks in and around the building."
Level 3 has been leased by the current owners of the building, who will take a two-year lease back from settlement.
The third tenant is Wilson Parking, with 25 car park spaces within the property.
The basement and lower ground levels contain 31 covered single car parking spaces, 12 stacked covered car parking spaces and 20 open car parking spaces. There are also 26 outside car parks. On the lower ground level is an IT server room and male and female amenities.
"The closeness of the Symonds St ridge to Auckland's major tertiary education providers has seen the area hold its popularity with investors and tenants," Hain says.
"The building benefits from easy access to the CBD, main transport routes and motorway networks.
"Public transport along district arterial routes is excellent.
"Access to the southbound motorway is within 250m of the property, along Symonds St, with off-ramps and on-ramps also along Khyber Pass Rd nearby."