"The transformed and funky City Works Depot which hosts a major advertising agency, avant garde eateries and media businesses is right next door to 18 Sale St while Victoria Park is on the other side."
ACC has three years still to run on its lease which generates a net rental income of $740,000 per annum.
Oscroft says net rentals for new offices in the immediate vicinity are reaching more than $400 per sq m which underpins the property's investment and development potential.
"The security of the cash flow to a government tenant is a key selling point, and with a weighted average lease term of about three years, an incoming owner could see probable rental growth when the current period ends."
He says the building particularly appeals because of its 'workable' size with a 3150sq m net lettable area that could interest a large number of potential tenants. "It's not too big and not too small."
Oscroft says the property could also attract developers wanting to add value to a well-positioned site. "They could keep the existing structure and refurbish it or undertake a significant redevelopment."
Construction is of reinforced concrete pile foundations, columns and frames, with reinforced block walls and pre-stressed DRIcore flooring. Three storeys of office space are complemented by one basement level with secure car parking for 30 vehicles. There are an additional 15 open space carparks on site.
"The building has an A-plus grade for earthquake performance which will comfort investors who are aware that many buildings require significant upgrades and associated costs," Oscroft says.
He says that under the Proposed Auckland Unitary Plan the property would be zoned City Centre which could lead to future opportunities.
Reed expects the property will attract strong interest from family trusts, developers and high net worth buyers from New Zealand and Asia.
