A fully-tenanted office building in Grey Lynn that comes with potential to add significant value in the future is on the market for sale.
Grey Lynn's 24-26 Pollen Street provides a great opportunity to secure a freehold, standalone property in one of Auckland's rapidly developing suburbs, just a stone's throw away from the bustling Ponsonby Road.
The property comprises a two-level building sitting on a 980sqm site with a net lettable area of approximately 1,007sqm. There is a basement level that houses 18 secured and covered carparks, in addition to around 122sqm currently being used for storage. The basements level provides an attractive proposition for future development as it is effectively 'pre-excavated'.
The ground floor is approximately 720sqm and includes a cart dock with a roller door, while the first level has an overall floor area of 144sqm.
JLL Commercial Sales Broker Jason Armstrong says this is an unprecedented offering for savvy investors.
"With around three years to go on each of the leases, it provides a secure income today with great development potential to add significant value in the future," says Armstrong.
"The building currently maintains an average rental of around $255 per sqm of office area, which means there is plenty of scope to increase the rental income either through rent reviews with existing tenants, refurbishing the space and attracting new tenants, or adding more floor area."
The building currently houses three solid tenants with Withers Tsang Chartered Accountants, The Insurance Place, and Best Practice, adding to its appeal as a safe and reliable cash flow. The immediate neighbourhood is characterised by predominantly light industrial to low-rise commercial developments with some high-density residential development.
The two level office building adjoins the recently developed 3,900sqm office building on 22 Pollen Street, and is in close proximity to the new Vinegar Lane development, the Williamson Avenue Countdown supermarket, and the range of amenities like convenience retails, cafés and established restaurants offered on Ponsonby Road, one of Auckland's premium shopping destinations.
There is great access to major transportation routes and the Auckland motorway network, with several public transport options within convenient walking distance.
In terms of future development, the building is located within Business – Mixed Use zoning, which Alex Wefers says opens up a lot of investment options.
"Whether the long term future of this regular shaped parcel is commercial or residential, the neighbourhood proves that both can work successfully in this area. A key bonus is the height variation of 27m," says Wefers.
"In saying that, the existing building is of a very high calibre. Constructed in around 1978, the primary structure is a concrete pier and beam frame with an A+ NBS rating. The balance of exterior walls includes concrete blocks as well as flat sheet panels and is well maintained – the entire long run roofing was replaced in 2012 and the exterior walls were painted in the same year."
The freehold property at 24-26 Pollen Street, Grey Lynn, is available for purchase via expressions of interest closing 4pm, on November 21.
All enquiries, requests for information, and arrangements to undertake inspections in relation to this opportunity are to be directed to the sole agents Alex Wefers and Jason Armstrong.