K Rd trophy building

The three-level 70s building for sale at 292-300 Karangahape Rd.

A three-level building on K Rd, described as a striking example of 1970s modernist architecture, is up for sale offering an immediate add-value refurbishment opportunity.

The 1288sq m building, designed in the early 1970s by architect Ron Sang, replaced a row of 19th century wooden shops on a 934sq m site at 292-300 K Rd.

Alan Haydock and Cameron Melhuish of Bayleys Auckland City & Fringe commercial team have been appointed to sell the offering by tender closing 4pm December 5. It will not be sold prior.

"This is one of K Rd's true trophies, occupying a high profile site on the corner with East St, and providing an immediate opportunity to add-value by refurbishing and leasing up the 352sq m of street level space that NZ Post has recently vacated," says Haydock.

"It's a block away from City Rail Link's planned Karangahape station, in what will become a sought-after location with station's expected completion in 2024."

The partially leased property is generating net annual rental income of $136,009 plus GST. The remaining ground floor space, approximately 213sq m is occupied by the K Rd Mart convenience store. This tenancy dates back to 2003, with rights of renewal through to October 2024.

The upstairs area of 561.5sq m encompasses a mix of office and exhibition space which is leased to Artspace (Aotearoa) Trust, which has been in occupation since 2005 and has prominent corner signage.

Artspace's present lease expires on January 1 next year with two three- year rights of renewal, which if exercised, would take it through until the end of 2024.

On the basement level accessed from the rear of the building, ex-mail sorting areas are now used for storage with Artspace also leasing 74.5sq m of this space. A further 70sq m in the basement is vacant.

A Kiwibank ATM machine forms part of the street frontage of the vacant retail area and while there is no formal lease in place for this, Kiwibank is interested in retaining this site, says Melhuish.

Melhuish says the building has a favourable earthquake assessment (71 per cent of New Building Standard) — a rarity on K Rd.

"It is widely recognised as a striking example of modernist architecture," Melhuish says. "Much of the upstairs area features polished concrete floors, with an elegant high stud and significant glazing providing well lit, character spaces."

On the exterior of the stairwell tower, one of the building's features, is a bronze bas-relief by New Zealand Chinese painter and sculptor Guy Ngan.

"The property's large corner landholding with its dual street frontages and favourable Business-City Centre zoning provides future opportunities to add value through refurbishment, leasing and development," Melhuish says

The City Centre zone permits a wide range of activities including offices, retail, residential, commercial services, entertainment facilities, visitor accommodation and boarding houses. There is a maximum height allowance for the location of 35 metres with a basic 4:1 Floor Area Ratio and maximum ratio of 6:1.

Haydock says the nearby new City Rail Link station is set to become the catalyst for K Rd's next regeneration, with most of the surrounding area zoned for more intensive use.

"The planned Karangahape Station on Mercury Lane will be a short walk away. A laneway between Mercury Lane and East St will enhance the connectivity of the station to the adjoining precinct west of its entrance."