Premium Parnell 'bottom drawer' property

The four-level building, at 7 Falcon St, Parnell, is for sale for the first time in 22 years. Photo / Supplied

A premium city fringe office property, in tightly-held Parnell, is for sale for the first time in 22 years, offering investors multiple income streams from three commercial tenants and 39 secure car parks.

The four-level building is located on a North-facing ridge with views overlooking Auckland Domain and Parnell Train Station.

David Burley and Kris Ongley of Colliers International, in conjunction with Orange Realty Commercial broker Chris Urry, are marketing 7 Falcon St for sale by way of deadline private treaty closing at 4pm on Wednesday June 19, unless it sells earlier.

The fully-leased property has a net lettable area of 1131sq m on a 620sq m freehold site and earns $553,885 plus GST in net annual rent; with fixed annual increases of 3 per cent among the rental review mechanisms.

Burley says it's a desirable 'bottom drawer' investment property or a long-term hold with future redevelopment potential, located in a pocket of Parnell, only a block from Parnell Rd and five minutes from Auckland's CBD.

"Built in the 1980s, it has been extensively refurbished to provide four premium levels of A-grade office accommodation surrounding a light-filled central courtyard.

"Long leases to established businesses make for an ideal passive investment, while Business Mixed Use zoning allows for future redevelopment of up to 27m in height.

Ongley says it is well located on the city-facing side of the Parnell ridgeline. "It has dual frontages to Falcon St and Cheshire St, both of which run parallel to Parnell Rd. The sloping rectangular site drops away from Falcon St and has been excavated to provide two levels of secure basement car parking, accessed from Cheshire St.

"High-quality interiors include exposed ceiling services and wooden floors. The upper floors feature views across to the Domain, allowing for possible conversion to premium residential accommodation in the longer term."

Holiday home rental management company Bachcare occupies the ground and second floors paying $306,451 in net annual rent, with annual rent increases fixed at 3 per cent.

The ground floor lease expires in August 2025, followed by three rights of renewal of three years each. The second floor is on a sublease until 2023, after which Bachcare has agreed to an initial two-year term to 2025, with rights of renewal to align with the ground floor lease thereafter.

Chartered accountants Kingstone & Associates occupy the first floor on a lease earning $156,534 in net annual rent, with the next market review in May 2020. The lease expires in April 2021, followed by three rights of renewal of three years each.

Australasian pharmaceutical distribution company Aspen Pharmacare occupies the top floor on a lease generating $90,900 per annum and annual increases fixed at 3 per cent. This expires in June 2022, with a single right of renewal of three years.

Urry says the property has immediate access to transport links, with the Parnell Train Station, Link bus route and the motorway interchange all located nearby.

"It's within walking distance of the Auckland Domain, University of Auckland, Auckland Hospital, the ASB Tennis Centre and the Spark Arena."