Auckland, 13 April 2013 - A prominent commercial office and retail investment property close to Auckland’s CBD in the busiest part of one of the city’s smartest and oldest precincts has come up for sale at 177 Parnell Road.
This rare offering is marketed by Jonathan Ogg of CBRE, the freehold three-level property is offered for sale by Deadline Private Treaty, with a closing date for offers of 4pm on 2 May 2013.
“One of the best-located properties in Parnell, 177 Parnell Road is a very well-maintained building with a strong standard of office and retail accommodation,” says Ogg. “It is an excellent investment prospect in the sweet spot of the private investor market, only a short distance to both public transport and the city.
“Fully leased to a vibrant and diverse range of high quality tenants, this passive investment opportunity offers a very good risk spread for investors, thanks to its tenant mix, property standard, enviable location and future upside. We are expecting considerable interest from high net worth investors and family trusts in particular.”
The three-level building comprises ground floor retail and office accommodation, with office on level one above and car parking for 30 vehicles on the basement level, accessed via Falcon Street. “This provides the property with a ‘significant’ internal car parking to floor area ratio” says Ogg.
The building, which was completed in the 1980s, occupies an 837sq m site. The building has been significantly refurbished over the past 10 years, with over $657,750 of capital expenditure in total, the property today has a floor area of 1,082sq m.
The ground floor features six retail shops with prime frontage to Parnell Road. Floor areas in the retail tenancies range in size between 40sq m and 52sq m, and include a pro-rata share of common areas.
A centrally-located entrance foyer on the ground floor provides access to the three ground floor office tenancies and four first floor office spaces.
“The site is under-utilised,” says Ogg, “particularly in light of the Unitary Plan, which has created a number of opportunities for intensified growth.”
The property is leased to a number of well-known companies which provide a total annual net income of approximately $554,889 per annum.
Retail tenants include the well-known Flight Centre; Hollywood Bakery; Kiwiana Trading, a retailer of New Zealand-made gifts and souvenirs; specialist cruise-booking agency Cruise About and sophisticated male grooming boutique chain The Stylish Man.
Office tenants in the property are equally typical of the high quality demographic of the surrounding area. On the ground floor, they comprise general dental practice and hygienist clinic Carabelli Dental, which has occupied the building for the past 18 years, as well as NoCowboys, which provides consumers with an easy way to find reputable tradespeople on the basis of customer feedback, and Australasian engineering solutions provider LEAP.
The largest tenant on the first floor, Eventfinda provides advertising for event organisers as well as ticketing services through its popular website eventfinder.co.nz, adjacent to Eventfinda are an electrical engineering company Greet Consulting which specialises in meeting the complex wiring design requirements demanded by prison, casino operations and large commercial complexes. Physio Solutions provides a full range of physiotherapy treatment and Aritech, a closely-held private equity firm.
The property is in the heart of the retail strip that comprises much of Parnell Road, says Ogg.
“Parnell Road is a sought-after location known locally as Auckland’s ‘Creative Quarter’, offering a vibrant mix of property types. Only minutes from the Auckland Domain, Parnell’s upmarket village shopping area features an international line-up of restaurants, cafes and bars, including Auckland’s largest art gallery precinct. As a result, the area is characterised by a high proportion of legal, accountancy and other professional services firms, who enjoy its boutique appeal.
“The immediate area surrounding 177 Parnell Road comprises predominantly low to medium rise commercial, office and retail buildings. Opposite the property are the well-known The McCarthy’s Irish pub and the refurbished historic Heards building besides Heards Park. The building’s neighbours are Burgerfuel on one side and a La Porchetta restaurant on the other.
“In addition, tourists are released into Parnell from a travel Bus stop right outside the building. This makes for a vibrant and popular area that attracts consumers, tourists and tenants in equal measure.”
Ogg adds that Parnell is New Zealand’s oldest suburb, dating back to the earliest days of European settlement in 1841. “Parnell’s rich heritage has seen the area become one of Auckland’s most desirable locations given its proximity to the central city area as well as the Newmarket shopping precinct and the nearby upmarket suburbs of Remuera, Orakei, Mission Bay, Kohimarama and Saint Heliers.”
Ogg also says that 177 Parnell Road is well-situated on the eastern fringe of the Auckland central business district and close to the area’s developing transport links.
“This property is well-served by buses, which circulate along Parnell Road every 15 minutes from the city and into the surrounding suburbs. In addition, the completion of the proposed Parnell Rail Station project will dramatically improve the public transport servicing of the locality and further shorten travel times into the CBD. This will only improve under the proposed City Rail Loop.”
Motorway access is provided via Stanley Street, a short distance from the property, enabling convenient access to the Northern, Southern, and North-Western motorways.
“Overall, the Auckland CBD fringe office market has seen a firming of yields since the high of late-2010. With current Auckland CBD fringe office yields expected to firm even further over the medium term.”
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.