Motorway off-ramp building sells for over $10 million

11:18 AM Monday April 11, 2016 Paul Charman

This former data centre at 55-59 Nelson St was sold by JLL.

Ever imagined a functional-looking building on a motorway off-ramp could be as exciting to investors as a Goldie painting, or bottle of Romanee-Conti brandy?

If not, maybe you should get out more, because the prosaic structure on Auckland’s Nelson St off-ramp (pictured right) has just changed hands for more than $10 million.

The former data centre on a 2125sq m site at 55-59 Nelson St was sold by JLL, which indicated a sale price “just north of that figure”.

The development opportunity was marketed internationally at more than $10.5 million attracting interest from local and international purchasers. The property has a lettable area of 4987sqm over five levels — three below ground and two above — and 21 parking spaces.

Nelson St has long been treated as an extension of the motorway off-ramp but is rapidly becoming a desirable location.

“The appeal of the Wynyard and Viaduct precincts is extending up Victoria St,” JLL New Zealand’s head of research Justin Kean points out.

“The addition of Spark’s Auckland headquarters, Oracle House and NZME’s new building on Victoria Street West have revitalised the area. The City Works Depot on Wellesley Street West has significantly improved the hospitality offerings in the area, and has become Bauer Media’s Auckland base.”

JLL’s Managing Director Nick Hargreaves and agent Ian Hall negotiated the sale.

“The location appealed, being opposite the planned $400 million International Convention Centre and across the road form the City Works Depot,” Hargreaves says. “Transport linkages are excellent and will be better once the City Rail Link is completed.”

JLL sees the Nelson Street corridor as the nexus of a significant urban renewal.