Lawyers' chambers lovingly restored

An interior view of the refurbished offices at 22 Lorne St. Photo / Supplied

Property investor Billy Boyd, whose passion is restoring old city buildings, has put on the market a handsome 1880s CBD brick building that has been extensively refurbished into light and airy barristers' chambers.

The three-storey character office/retail building at 22 Lorne St in central Auckland follows Boyd's property investment modus operandi ... It was inner-city, old, run down and in need of restoration. "Bringing these old buildings back to their former glory is satisfying from a property development point of view," says Boyd.

He gutted the Lorne St building, and carried out extensive structural work that included new plumbing, wiring, air-conditioning and a substantial fire upgrade. A new central staircase was put in and the upper two levels of office space refitted for a group of barristers, bringing the property up to an exceptional standard.

It is now on the market through CB Richard Ellis' national director Bruce Whillans and is being offered for sale by tender closing on October 29. Boyd says he is selling the property and buying a bigger building just outside the CBD to give it a makeover.

The stand-alone Lorne St building has two street-level shops covering 80sq m and two levels of office over 191sq m bringing the building's total net lettable area to 279sq m.

Boyd bought the building with a business partner two years ago when it was the Cut Above Academy. Cut Above was about to leave the premises after 35 years of occupancy. "I usually buy older buildings to give them a birthday, then add them to my Empire Properties portfolio and keep them," he says.

"We decided to end the partnership, but the buyer defaulted and the sale was cancelled. When Cut Above moved across the road, I took over my business partner's interest and decided to revamp the property. A lot of TLC went into it."

Architect Andre Hodgskin designed the new-look interior of the building. "He has a great feel for creating light, airy and energetic space. He is uncompromising in his design and materials and it shows in his work," says Boyd, who has used Hodgskin on a number of his projects.

The building features glass, wood panelling, exposed brick walls and wooden flooring. A fireplace was installed on the second floor at the request of the barrister tenants. "It was no ordinary job,' says Boyd. "I wanted the services to be chased into the brick facade so they didn't show. It took some time and was expensive, but we have no ugly pipes cluttering the interior."

Boyd says the renovation was challenging at times, particularly matching fire doors and entrances and exits to the overall design. The fitout detailing also extended to the fire doors, and timber veneers were added to create a sculptural look. "It is important not to forget the little details when restoring old buildings to their former glory."

Before the renovation was finished Boyd had leased the office space to two barristers and found tenants for the ground-floor retail. "The two leading tenants wanted to work in an inspirational open-plan top-floor space with meeting rooms downstairs and further offices for other barristers."

Whillans says the revamped floors work exceptionally well and are light years away from the stuffy barristers' chambers of a decade ago. He is an admirer of Boyd's work on older city buildings. "He has done an outstanding job on several buildings that were in danger of being forgotten.

"Boyd doesn't have difficulty finding tenants and has a strong following by the city's law fraternity for the edgy space he creates in character buildings, which are few and far between in Auckland."

Returning about $105,000 a year, the property has a 6.4 year weighted average lease term providing surety of cashflow, says Whillans. "The anchor tenant has a nine-year lease with fixed annual increases of 4 per cent."

He says soft ratchet clauses protect the retail leases ensuring the rental stream does not fall below the rent established when the building was first leased. "Set at conservative rents, the retail units are capable of providing further rental growth."

Whillans says opportunities to buy small buildings of this standard are rare in the CBD. "The property's prime location, extensive refurbishment, lease profile, retail and office mix make this an excellent addition to an existing portfolio or as a first-time buy."

Lorne St has become an increasingly fashionable retailing location, acting as an extension of High St with cafes, boutiques and art galleries. "The redevelopment of the Auckland City Art Gallery and extensive upgrade of Khartoum Place and Lorne St has given the precinct a boost."

Older buildings are the most expensive to fix, says Boyd. "They are usually a labour of love. It is difficult to start out with a renovation budget in mind because it is impossible to know what the revamp will entail until the builder starts uncovering the many layers added over the years.

"Contractors will not give a fixed price on these types of buildings because they have to be taken apart and put back together again. Usually nothing is square and in the past most have had cowboy alterations that have not complied with council regulations. The cost is an open-ended equation until the job is finished."

Boyd says a new owner at Lorne St will reap the benefit of the hard work that has gone into the property. "It is almost like owning a new building."

He says the property is a "perfect investment" for a family trust. A new owner gets a good investment and a beautiful building with a handsome facade. This building has the X-factor that will give pride of ownership as well as a secure return."

Boyd says that although the Lorne St property is not listed and essentially it is an unremarkable building, the fact that it is still around is remarkable. "Its new lease of life will mean it can be enjoyed for another 50 years and probably beyond."