The distinctive half-round building at 24 Centre St has its own freehold title. Photo / Supplied
The distinctive half-round building at 24 Centre St has its own freehold title. Photo / Supplied
One of Auckland's smaller CBD standalone properties is for sale, offering affordable access to New Zealand's largest commercial property precinct.
Located on 134sq m of land at 24 Centre St in the Victoria Quarter, the 132sq m half-round building is surrounded by much larger multi-storey premises.
It generates annual net rent of $52,000 from a lease to a well-established hair salon.
"It's very unusual to find a property of this size with its own freehold land title available for purchase in the CBD," says Cameron Melhuish of Bayleys' Auckland City & Fringe team.
"Usually, they will be on a unit title with all the body corporate payments and obligations that go with that, along with possible restrictions on future development. It's also a very interesting and distinctive looking building which gives it a point of difference in the marketplace."
Melhuish is marketing the property with Bayleys Auckland colleague Andre Siegert. It will go up for auction at 2pm on Wednesday, July 11, unless sold earlier.
The salon interior has polished wooden floors and a mezzanine. Photo / Supplied
The building's 114sq m ground floor is largely open plan with staff facilities including a kitchenette and bathroom with shower and separate toilet. Above is a small mezzanine area measuring about 18.7sq m which is predominantly used for storage.
The building provides attractive, well-lit high-stud character space, with polished wooden flooring and exposed building services, and is well suited to its use as hair salon, says Siegert.
"The property was purchased by the present owner in December 2006 and the building was substantially refurbished prior to it being occupied by an associated hair dressing business.
"Around five years ago the vendor sold her shares in the salon business to her business partners, who continue to run it. Now she is selling the property as a leased investment, offering smaller investors and family trusts the opportunity to get a foothold in the CBD's sought after and growing Victoria Quarter."
A current lease is in place to Wolf & Wolf Ltd until February 2019 with two two-year rights of renewal which, if exercised, would take its final expiry through until early 2023. There are rent reviews to market at each renewal.
Melhuish says the site is now underutilised, as evidenced by the other bigger commercial buildings around it. Its City Centre zoning permits more intensive development.
"Longer term there could be potential to add considerable further value by fully redeveloping the property, subject to obtaining the necessary council consents. Possible options include building car parking or retail premises at ground level with two or three commercial and-or residential levels above."
Melhuish says the City Centre zoning is flexible and permits an extensive range of commercial and residential activities. This part of the CBD has a height restriction of 16m and a permitted floor area ratio of 3sq m of building to every 1sq m of land.
Victoria Quarter has experienced significant recent residential and commercial development.
