Iconic Viaduct building coming to market for the 1st time in 20 years
Iconic Viaduct building coming to market for the 1st time in 20 years
| 7 September 2019
For the first time in twenty years an instantly recognisable, iconic waterfront office and hospitality asset of rare prominence in the heart of Auckland’s downtown entertainment precinct is set to come to the market for sale.
In the centre of Auckland’s hugely popular Viaduct Harbour, and 100% occupied by some of the most recognised food and beverage operators in Auckland, 204 Quay Street will be marketed by exclusive agents Jonathan Ogg and Warren Hutt of CBRE.
The property will be offered for sale through a campaign that is due to start on 21 September, by way of an International Deadline Private Treaty campaign closing on 22nd October 2019 at 4pm NZST.
Warren Hutt says 204 Quay Street is an iconic landmark property in a true gateway location. “Not only is it highly prominent, well-known and visited on its own, but it is set to gain from over $1 billion in surrounding waterfront investments by the public and private sectors as Auckland approaches the America’s Cup in 2021.
“The purchaser of this property will benefit immediately from established tenants and a long WALT providing a secure long-term income stream. They will also be exceptionally placed to take advantage of Auckland’s increasing focus on the waterfront through and well beyond the America’s Cup.”
204 Quay Street is a four -level commercial building offering high quality hospitality and office space on a 2,744 sqm perpetually renewable leasehold site.
The main buildings were originally completed in the 1940s and extensively refurbished over recent years. Today they offer net lettable area of approximately 5,474 sqm.
100% leased, with a long Weighted Average Lease Term of 7.8 years, the property currently provides net passing income $1,512,325 per annum plus GST from a number of well-known tenants. These comprise Holey Moley, Danny Doolan’s, and Degree Bar & Restaurant are situated on the Ground level all of which have invested significantly in their fitouts in recent years. Degree Bar has also just completed a full makeover.
One level above are the popular Dr Rudi’s, Saint Alice and Parasol & Swing hospitality venues, and on Level 3 are the offices with amazing views over the Viaduct Harbour and occuopiedby leading listed engineering and infrastructure company Downer Group, alongside one of New Zealand’s largest commercial, mixed use and residential masterplan developers, McConnell Property.
“204 Quay Street’s food and beverage tenants are widely regarded as some of the best, offering the busiest dining and nightlife entertainment within Auckland,” says Jonathan Ogg. “Large and efficient floor plates, ample natural light and terrace views of the Viaduct Harbour are key factors in attracting and retaining tenants in these sun-soaked eateries, and fixed annual rent reviews will provide strong income growth for the purchaser.”
Hutt says that 204 Quay Street enjoys a gateway waterfront position in New Zealand’s most desirable food and beverage location, surrounded by major infrastructure and commercial developments and a growing resident and working population.
“The Viaduct is adjacent to the city’s main commercial and retail hubs. Not only is it peppered with New Zealand’s most popular bars and restaurants, with views of the Waitemata Harbour that have made it an essential part of any Auckland itinerary, but it is well connected with direct access to the Britomart train station, ferry terminal and multiple public transport linkages.
“This superb waterfront location in the heart of the Auckland CBD, offering uninterrupted water views, means that we can confidently say that 204 Quay Street is in Auckland’s most desirable dining and entertainment precinct, often the first choice destination for locals and tourists alike.”
He adds that ahead of the 2021 America’s Cup, Auckland Council and the Government have committed $212 million to upgrade the waterfront through creating new cup bases and super yacht moorings.
“This is part of a wider series of investments into infrastructure and commercial projects totalling more than $1 billion as the city approaches the America’s Cup. Auckland’s Viaduct Harbour will become the base for Team New Zealand and home to all syndicates for the prestigious AC36 cup regatta. Aiming to stage a successful event and defence of the cup, 204 Quay Street will be at the forefront of this world-class event with the opportunity to showcase the city, harbour and its innovative sectors on a global stage.
“The property will also benefit significantly from the nearby 5 Star Park Hyatt hotel that is set to open in the second half of 2019, and the $1 billion Commercial Bay precinct that is due to house several thousand new workers only a short stroll away when it is completed in early 2020.”
With more than $28 billion of large construction projects underway, Auckland is in the midst of a period of heavy infrastructure investment, says Ogg. “Current major projects include the $700 million New Zealand International Convention Centre, America’s Cup Village and the $3.4 billion City Rail Link – New Zealand’s largest infrastructure project ever undertaken.
“When considered overall, these developments will be the most transformational project Auckland has ever seen, in turn making the city’s waterfront a stronger economic force, and more attractive to residents and visitors, now and into the future.”
This confidence is backed by statistics that show international visitor arrivals into Auckland have already increased by more than 840,000 over the past five years, with an annual average growth of 7.6%. Moreover, by 2021 Auckland City’s residential population is projected to reach 70,000, and Wynyard Quarter will have a community of 5,000 residents.
This combined growth is set to drive long-term demand for food and beverage space and operators in this precinct, according to Ogg. “Auckland is a key hub of New Zealand’s food and beverage industry.
“F&B sales are also a large and growing share of consumer retail spending, with New Zealand’s hospitality sector achieving record sales of over $11.2 billion in 2018. Within the Auckland CBD, an increasing amount of retail supply continues to be taken up by F&B operators looking to capitalise on New Zealand’s growing food culture.
“Investors are now showing a growing preference to upgrade and expand F&B offerings, using innovative food concepts to attract foot traffic and take advantage of the higher rents on offer, making it one of the highest and best uses of available space. As a result, 204 Quay Street offers an extraordinary opportunity for the purchaser to place themselves at the beating heart of Auckland’s future.”
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ABOUT CBRE GROUP, INC.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.