The changing scene on K' Rd

The character building at 145 K Rd, identified by a red border, is near the top of Queen St. Photo / Supplied

A character building on Auckland's Karangahape Rd, which dates from the early 1900s, is described by brokers as an unsurpassed multi-tenanted opportunity.

JLL broker Jason Armstrong says the character building at 145 K Rd is near the top of Queen St, amid some of the CBD's highest foot traffic.

The 1008sq m building consists of three levels, divided to include two retail spaces, plus residential accommodation and office space.

As well as the retail tenancies it derives income from an accommodation provider who rents space for short-term tenancies. The top floor is vacant office space, complete with new kitchen and bathroom facilities.

This space has recently been refurbished. The building, which sits on 446sq m of land, is for sale by expressions of interest, closing July 14.

"It would suit a split tenancy, could be converted into inner-city apartments, or even a New York-style live-and-work space," says Armstrong.

"Annual net rental income is $304,609 per annum, with the vendor guaranteeing a three-year rental over the vacant area, should a purchaser require a fully let property."

Armstrong says the two retail shops are at street level, while an additional income stream comes from 10 rooms, recently refurbished to a high standard.

Having recently been rented out to an Airbnb operator, these are away from the noise on the level beneath. This floor opens out onto a large courtyard. This extra land presents an opportunity to explore capitalising on further intensification of this site and also, having been well positioned, can take advantage of the generous development parameters in this Karangahape Rd Precinct, which brings with it scope to develop the property to a maximum height of 35m. Once owned by The Auckland Baptist Tabernacle, the property has seen many colourful nights on the renowned K Rd.

However, the area is changing.

JLL agent Jason Armstrong says quality restaurants and eclectic clothing stores selling designer and vintage items are moving in.

"K Rd will also be the home of International electric car maker, Tesla, set to establish a NZ headquarters with a big glazed roadfront showroom, at nearby 502 K Rd."

A rejuvenation plan in the pipeline for K Rd will see a major revamp set to start in 2018 with Auckland Council improvements said to be peak hour bus lanes, upgrades to the current street furniture, separate cycle way and improved landscaping.

One of the new train stations for Auckland CBD, forming part of the new City Rail Link, will be on Mercury Lane just off K Rd.

The City Rail Link project, commencing this month, is expected to take five and a half years to complete.

"By 2022, Rd will experience more visitors with trains expected to allow for 30,000 people an hour at peak," says Armstrong.

"Purchasers looking for a sound city investment in one of the most iconic Auckland CBD locations will see 145 K Rd as a strategic acquisition. It has add-value components and multiple income streams.