A five-storey, 1930s character building with frontages to Queen St and Vulcan Lane in Auckland is on the market.
The building at 112-116 Queen St has four office floors and retail shops on the ground floor that produce a net income of $470,000.
The retail tenants include Andrea Biani Shoes, Partridge Jewellers,
the French Bakehouse and a Bank of New Zealand ATM machine.
The property is for sale by negotiation through Bayleys agents Dominic Ong and James Chan.
Queen St is regarded as the jewel of retail in New Zealand, says Chan. A chance like this for investors looking for a passive investment in the heart of Auckland City, where there are large pedestrian numbers, doesn't come up very often.
"For an investor who doesn't want to have to spend money on sprucing up an older building and making more of a property, this building is well presented, leased well and has a great location. It would be hard to find such a good investment opportunity at this level in Queen St."
The corner building was erected in the 1930s with a floor area of 689 sq m and land area of 187 sq m.
Ong says the recent sale of the Westpac Bank building for $15 million at a yield of 7.7 per cent has shown that the CBD market is strengthening, with central city office and retail properties showing good capital growth and tightening of yield.
Well situated properties with strong tenants are in big demand from local and international investors. Recent Bayleys Research reports say retail occupancy levels have improved with cafes, restaurants, fast food outlets and clothing being the most prominent users of retail space.
Support for the retail sector is expected to remain stable in the immediate future.
