Prime Auckland city freehold-titled unit

Unit E at 198 Federal St is identified by a red border. Photo / Supplied

A stratum-in-freehold commercial ground floor property with two secure car parks,and ideal for entry-level commercial investors, is for sale in the Auckland CBD.

Barfoot and Thompson agents Ben Jamieson and John Stringer are selling Unit E at 198 Federal St by deadline private treaty, closing at 3pm on December 6.

The agents say the property is a well-presented ground floor office/retail unit of about 66sq m that is within a 15-unit development.

This comprises a circa 1964 four-level building constructed of concrete and concrete block; with Longrun steel roofing.

It has a Grade-B seismic rating, equalling 69 per cent of the New Building Standardand comprises a mix of commercial and residential units, with the residential ones mainly on upper floors.

The unit for sale has an open plan-office area, with separate boardroom, kitchen and bathroom. It has two undercover carparks, accessed from the southern end of the building.

"Seldom do entry-level investment properties like this come on the market in such a high growth and sought-after location," Jamieson says.

"It's just two blocks from Queen St in a prime CBD location. Being positioned at the southern end of Federal St, makes it close to the city's civic centre and arts and entertainment hub."

Stringer says the property is zoned Business-City Centre under the Auckland Unitary Plan, allowing for a wide range of activities and the greatest intensity of development in Auckland.

"This unit would be well suited to either commercial or retail users and, subject to the granting of a resource consent from Auckland Council, could possibly be converted for full residential use," he says.

The unit is earning $35,914.48 per annum net, plus GST, and is occupied by Airbnb property management company Pillo Property. Pillo holds a three-year lease that commenced on October 1 last year. It has a three-year right of renewal at the conclusion of this term.

Annual operating costs are $9,394.76 net plus GST and are paid by the tenant.