Sell off gives chance to move into popular inner city area

The low-rise modern office block at 22 Dundonald St, Newton, which is for sale. Photo / Supplied

Sound system specialist Soundcraft 2007 Ltd, which has played a big part in New Zealand's music and conference industries for 40 years, is selling its modern, low-rise office block at 22 Dundonald St in Newton, giving a new owner the opportunity to occupy the space or lease it back to Soundcraft.

Scott Kirk, of Bayleys Auckland, says the Sipka family which owns Soundcraft, is selling the premises the company partially occupies to pursue other investment interests, creating an opportunity to buy a substantial freehold standalone property in an increasingly popular inner fringe city area.

"Very few freehold premises become available in this location and this building is on a substantial site of 1104sq m with good parking for around 30 cars," he says.

Kirk is marketing the Newton office building with Bayleys Auckland colleague Marianne Murray-Brown as part of Bayleys' latest Greater Auckland portfolio. The property is for sale by tender, closing August 11.

The 1111sq m building, which has recently been reclad with Alucobond panelling, produces net annual rental income of $195,660 from three tenants including Soundcraft, all on short term leases. It also has 240sq m of first level office space and 45sq m of ground floor showroom or office space which are vacant and could suit an owner occupier or could be leased which would increase the annual rental return to closer to $260,000, says Kirk. An owner occupier could also have access to a further 358sq m of office and storage space now occupied by Soundcraft.

"Someone wanting office space close to the city would be buying a building that would provide additional income from the other two tenants while allowing themselves space for future growth," says Kirk.

The property has secure undercover parking for 20 cars at ground level, and 10 to 12 external carparks at the rear of the building.

The ground floor has a formalentry and stair lobby leading to two upper levels of fitted-out office accommodation with a total area of 1018sq m.

"It's a well presented relatively modern, low rise commercial building with polished concrete floors and good natural light," says Murray-Brown.

"It's in a developing central location offering convenient access to motorways, the CBD and fringe city suburbs, including Ponsonby, Kingsland, Mt Eden and Newmarket.

"The upper Symonds St retail area is a couple of minutes walk away and it now provides popular bars, cafes and restaurants which have opened up in recent times."

While the building's current use is predominantly office, it is in a area which has become popular as a fringe inner city residential address.

"Recently there has been some purchaser activity in the area looking at residential or short term accommodation conversions, mainly driven by a strong surge in residential rentals and a shortage of affordable housing options in Auckland," says Kirk.

"No 22 could follow suit, given its mixed use zoning.

"It's of solid concrete construction combined with an existing floor area ratio of only one-to-one allowing for the possibility of adding another one or two levels on the building, subject to council approval."

Kirk says the area provides access to a large number of potential residential tenants, including CBD professionals, students at Auckland University and AUT, and Auckland hospital workers.