Auckland, 10 March 2015 - Two character buildings on a prime corner adjacent to the Sky City/Federal St precinct in Auckland’s central business district have been placed on the market, at a time when significant regeneration and growth is underway in the area.
83 and 85 Albert St are being marketed by sole agent Jonathan Ogg of CBRE. The properties are for sale as one parcel by deadline private treaty closing on Thursday 26 March 2015, unless sold prior.
Anchored by major tenant Lumino The Dentists, part of publicly-listed company Abano Healthcare, the properties present a compelling, fully occupied investment generating net annual rental income of $340,577, with significant potential to add value in the future, says Ogg.
“As income-generating assets, these properties offer good cash flow from a diversified range of retail and office tenants. The main tenant, Lumino The Dentists, is a nationally-recognised brand backed by a major listed company, and the income stream is supplemented by four other tenants, providing a solid, split-risk investment.”
Various future options will increase the attractiveness of the properties to potential buyers, Ogg adds. These options include the ability to sell one of the buildings later, or to redevelop the entire site.
“The two titles offer the capability to dispose of part of the asset at some point in the future as the two buildings can be on-sold individually. Alternatively, there is potential for future development within the same wider block, given 170 apartments are now being marketed on the ex-Palace Hotel site at 75 Victoria St on the other side of this block.
“Land values in the immediate area have shown strong appreciation, with recent sales in the $10,000sqm to the $13,000sqm range. People are seeing the value in well located CBD sites.”
Whether the new owner elects to ‘buy and hold’ these bankable properties or plan a redevelopment project, Ogg says the regeneration of this part of Auckland City will be one of the main attractions.
“This is an enviable CBD location on the doorstep of Sky City and Federal St, metres from Victoria St and just one block from Queen St. The regeneration of Federal St, including the construction of a ‘shared space’ vehicle and pedestrian thoroughfare and the opening of several new restaurants, has placed the area among Auckland’s top entertainment precincts, rivalling Britomart and Ponsonby.”
The proposed International Convention Centre means property in the area is already keenly sought-after, says Ogg.
“The regeneration of this part of the city has gathered pace since the announcement of plans for an international convention centre at Sky City. As a result, owners of property in the immediate vicinity of Sky City are likely to enjoy value increases as people clamour to get a piece of the action in coming years.
“These two buildings therefore present a rarely-available chance to acquire a well-located, prime land holding with immense future potential, in an attractive price bracket,” he says.
The buildings, both constructed in the 1920s, have attractive character facades with period features such as sash windows and decorative plasterwork, typical of many of Albert Street’s original commercial buildings.
83 Albert Street is a four-level, 371sqm office and retail building, occupied by Lumino The Dentists on the second and third floors; along with a café, liquor store, women’s clothing shop occupying the ground floor and a beauty spa on the first floor.
The properties are situated on the corner of Albert St and Kingston St, opposite the Auckland District Court.
“Other notable occupiers in the immediate area include the Automobile Association, Rydges Hotel, the Media Design School and Auckland Council,” Ogg says.
“Further along, the APN /NZME. site at 46 Albert Street has been purchased by Manson TCLM and is planned for major redevelopment. Manson often lead the way in transforming and enhancing an area, with Victoria Street being a very good example.”
The buildings are also located close to the 52-storey, 209 metre high commercial development planned by Shanghai-based interests, on the carpark site on the corner of Albert St and Victoria St. The development is mooted to comprise a 302-room hotel and entertainment complex, residential apartments, shopping centre, restaurants, cinema and sky decks.
Adjacent to the proposed Central Rail Link, the site will be within easy reach of Aotea Station on the proposed City Rail Link line, enhancing the existing public transport offering in the area.
Ogg says: “With over 50,000 new people projected to come to Auckland this year, properties as well located as these will offer pride of ownership for many years to follow.”
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 2014 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.