Eden Terrace office building could fly higher

5:00 AM Saturday March 14, 2015 Colin Taylor

This four level office building is for sale at 10-12 Exmouth St.

A large Auckland CBD fringe property in Exmouth Street, Eden Terrace, owned and occupied by Air New Zealand for the past 38 years, is up for sale offering a new owner a variety of future refurbishment or redevelopment options.

Located on a 2198 sq m  site at 10-12 Exmouth Street, Eden Terrace, the four-level 3852 sq m  office building was developed for Air New Zealand in the mid 1970s but is now surplus to requirements and is being offered for sale with vacant possession.

Alan Haydock and Cameron Melhuish of Bayleys Real Estate have been appointed sole agents to market the property by way of international tender, closing on April 29.

It is among almost 90 properties featured in Bayleys’ latest Total Property portfolio launched yesterday.   

Haydock says the property, which has dual frontage to Dundonald St, will not be sold prior to the tender closing date and is expected to appeal to a wide range of potential purchasers including add value investors, owner occupiers, developers and land bankers. 

“It’s a solidly constructed building, with a favourable seismic rating and large, versatile office floors that are mostly column-free and which benefit from excellent natural light. The concrete flooring could be exposed and polished and the floors’ high studs further enhanced by removing the suspended ceilings. Coupled with an upgrading of services and amenities this could provide a modern and elegant working environment in a low vacancy market where it is becoming increasing difficult to find good quality, large centrally located office floors,” says Haydock.

“The property could accommodate one or multiple tenants. An owner occupier could also occupy all or part of the building and lease out any surplus space for a term that would enable them to use that area further down the track should their business expand.”

Haydock says another attractive feature of the property is its generous car parking with two basement levels, both accessed from Exmouth St, providing 85 secure parks as well as storage space.

The two office levelsabove of 1433 sq m and 1510 sq m respectively comprise predominantly open plan spaces with lunchroom, kitchen and bathroom facilities and have their main entrance on Dundonald St. The building is serviced by a single lift to all levels and building services include fire sprinklers and air-conditioning.

Melhuish saysthe largeunder utilised site also offersa number of future development options. The property currently has a flexible Mixed Use zoning that allows a mix of residential, business, educational and leisure activities in areas of the city which have easy access to public transportation.

The property also has the same zoning under the Proposed Auckland Unitary Plan but with an additional height overlay allowing a maximum height of 20.5 metres above street level which would enable the Exmouth St site to be more intensively developed.

“Potentially additional floors could be added to the building, although prospective purchasers would need to undertake their own engineering and feasibility assessments in this regard.”

Melhuish says Eden Terrace is an increasingly popular and sought after city fringe suburb with the surrounding area reflecting the Mixed Use zoning and encompassing low to medium rise commercial office and apartment buildings.

“The area is within the Auckland Grammar zone and a number of new apartment buildings have recently been completed with further units currently under construction such as the redevelopment of the neighbouring former Orange Coronation Hall building. The Air New Zealand building has a pleasant outlook over the nearby Basque Road Reserve which would enhance its appeal for both office and residential occupants as does its good access to city motorways and public transport.”

The proposed Auckland City Rail Link (CRL) is also set to provide future benefits for the location, says Melhuish. It will extend from the Downtown area in the CBD to the western line at Eden Terrace. Plans for a Newton station have been abandoned in favour of redeveloping the existing Mt Eden Station, which is within an easy walk of 10-12 Exmouth Street, he says.

“The intensification of an already flexible zoning - along with being close to the CBD, other city fringe suburbs and major transport links - is likely to see this location continue to grow both

commercially and residentially,” says Haydock. “In particular, the property we have for sale offers the potential for higher valued uses through refurbishment and the addition of floor area or a complete redevelopment of the site.”