Wellington, 13 October 2014 – A landmark Grade A office and car park building in the heart of the Wellington CBD and Government precinct has come onto the market.
80 The Terrace is exclusively marketed by Ryan Johnson of CBRE Wellington on behalf of Precinct Properties Holdings Limited. The 18-storey property is for sale by international private treaty, with a closing date of Tuesday 11 November 2014 at 4pm.
Ryan Johnson, Managing Director for CBRE New Zealand, says: “This is an iconic Wellington property - a recognised feature of the central city’s landscape and the only A grade asset to hit the market this year. It offers diversified income from a strong tenant base and has exceptional connections to key Government and corporate precincts at a time when demand for quality office space is constantly growing. With all the fundamentals firmly in place, 80 The Terrace presents a hugely lucrative investment option to the market.”
Featuring 14 levels of Grade A office accommodation and four levels of basement car parking, the property was designed by award winning architect Warren and Mahoney and built in 1986.
Johnson says: “With large floor plates of around 780sqm, 80 The Terrace offers efficient and enviable workspace. All floors, apart from the top two levels, were fully refurbished between 2012-2014 to the highest quality, which has further enhanced the building’s attractiveness as a premium office building.”
“Car parks in Wellington CBD are also highly lucrative, and with 138 car parks on site, 80 The Terrace has one of the highest ratios in the city.”
Johnson says Holmes Consulting Group carried out a thorough seismic assessment of the property after its recent refurbishment, rating it at 80% of NBS.
In addition, the building’s upper levels have excellent natural light which combined with modern and efficient floor plates and flexibility of layout, adds to the property’s internal appeal.
“With a total net lettable area of around 10,675sqm, 80 The Terrace has a potential passing income of $3,742,736p.a. The strong, diverse tenant mix is dominated by Government and corporate tenants including the NZ Fire Service, MWH NZ Ltd, NZ Medical Council, Transport Accident Investigation Commission and AECOM.
“This robust tenant mix and high building occupancy demonstrate the ongoing demand for space in the tower. The buildings close proximity to The Beehive and Lambton Quay underpins the strong tenant profile of the property.”
Located in the heart of Wellington’s CBD, 80 The Terrace is just 300m from The Beehive and less than 100m from central Lambton Quay which provides the perfect equidistance for Wellington’s major occupiers of government and corporate.
Johnson says the ramp for State Highway One is around 300m to the south of the building, providing convenient access to the northern suburbs of Wellington.
80 The Terrace offers stability of income and high ongoing tenant demand, with competition for high quality, efficient buildings growing in the CBD. “80 The Terrace has also enjoyed a robust asset management programme which has ensured the building is presented to a high standard with minimal capex required for the new purchaser. “
Matthew St Amand of CBRE Capital Advisors says “Our market research consistently shows that there has been a flight to quality in the CBD, as tenants look to move to better, seismically strong and more efficient office space - and 80 The Terrace more than fits that criteria.”
“Prime and Grade A properties currently have a low vacancy rate and the lack of supply is underpinned by high new build costs which will see continued upwards pressure on rentals. This creates exceptional conditions for investment in 80 The Terrace. Vacancy for the CBD is just 1.6% for Grade A premises and that’s only going to tighten in the future.”
“The opportunity for additional income is presented through the option of refurbishing the ground floor area of the building (40-50sqm) to create an in-house café opening out to additional seating in the gardened courtyard.”
Johnson says “With superior property and market conditions in place now, and opportunities for further income and options in the future, 80 The Terrace is both a landmark investment option and a very sensible profit generator too. We’re encouraging motivated purchasers to get in touch without delay - because this iconic office building will soon be seized by the hungry investment market if you don’t make your move.”
View the Dominion Post article
About CBRE
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 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 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.
