Old characters offer new options

12:00 PM Wednesday March 11, 2015 Colin Taylor

These adjoining character buildings are for sale at 83-85 Albert St in the Auckland CBD.

Two adjoining character buildings are for sale on a prime corner site adjacent to a regenerating area around Sky City and Federal St in Auckland’s central business district.

“The buildings at 83 and 85 Albert St are being sold as one parcel,” says sole agent Jonathan Ogg of CBRE who is marketing them for sale by deadline private treaty closing on Thursday March 26, unless they sell earlier by negotiation.

“Anchored by major tenant Lumino The Dentists, which is part of publicly-listed company Abano Healthcare, the fully-occupied properties represent an investment generating net annual rental income of $340,577, with significant potential to add value in the future,” says Ogg.

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 older commercial buildings.

The building at 83 Albert Street is a four-level, 371sq m 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.

Next door 85 is a three level building of a similar era that has been converted into a dental centre with the ground floor containing the main reception area and surgeries on the first and second floors.

The properties are situated on the corner of Albert St and Kingston St, opposite the Auckland District Court.

“As income-generating assets, they offer good cash flow from a diversified range of retail and office tenants. While Lumino The Dentists is the main tenant, the income stream is supplemented by four other tenants, providing a solid, split-risk investment.”

Ogg says various future options will increase the attractiveness of the properties to potential buyers.

“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 $10,000 sq m to the $13,000 sq m range. People are seeing the value in well located CBD sites.”

Whether the new owner elects to buy and hold onto the ‘bankable’ properties or plan a redevelopment project, Ogg says the regeneration of this part of Auckland City will be a main attraction.

“This is an enviable CBD location on the doorstep of Sky City and Federal St, just a few metres from Victoria St and one block from Queen St. The upgrading 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,” Ogg says.

“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 see values increase as people clamour to get a piece of the action in coming years.”

“With over 50,000 new residents projected to relocate to Auckland this year, these properties present a rare chance to acquire a well-located, prime land holding with immense future potential, in an attractive price bracket."

“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 road, the NZME. [former APN] site at 46 Albert Street has been purchased by Mansons TCLM and is set for major redevelopment. Mansons often lead the way in transforming and enhancing areas with the regeneration of Victoria Street being a very good example.”

The buildings are also close to the 52 storey, 209 metre NDG Auckland Centre development planned by Shanghai businessman Furu Ding for the corner of Albert St, Victoria St and Elliot St that includes a 302 room hotel and entertainment centre, residential apartments, shops, restaurants, a cinema and two sky-deck areas.

Additionally, the 83-85 Albert St site will be near the new Aotea Station on the proposed City Rail Link line.

What’s on offer?

The property: Two adjoining character buildings.

Location: 83 & 85 Albert St, Auckland CBD.

Agency: CBRE

Sales method: Deadline private treaty.

Closing date: Thursday March 26.

Features:

  •          For sale as one parcel.
  •          Earns net annual rent of $340,577.
  •          In regenerating CBD area.
  •          Near proposed international convention centre.
  •          Potential sites for redevelopment. 

True Commercial - Jonathan Ogg, CBRE.jpg

Jonathan Ogg of CBRE.