Parnell trophy building for sale
The four-level office building at 27 Bath St, Parnell, has undergone extensive renovation. Photo / Supplied
A fully leased, four-level Parnell office building is for sale, with agents citing its sweeping harbour views, redevelopment potential and good parking as drawcards.
The building at 27 Bath St has also undergone extensive renovation, bringing it up to an A-grade seismic rating, says Henry Thompson, marketing agent for
Whillans Realty Group.
“This property delivers about 1009sq m of net lettable area across three office floors. Each floor has its own north-facing balcony with ‘wow’ factor views, right across the Waitemata Harbour to Rangitoto.”
Thompson says the property — for sale by tender, closing June 27 — comes with 16 covered ground floor parking spaces, available to tenants. A five-person lift was installed last year.
“Parnell is sought after by local investors and family trusts looking for commercial investment property and this makes 27 Bath St a genuine trophy building.”
The office block has four individual tenants and is now earning a net annual rental income of $373,032.
Tenancies, which have a weighted average lease term (WALT) of four years, include Blue Star Group’s Blue Star Works division, accountancy firm BHW Ltd, Advance Marketing and Ziwi Peak.
Thompson says the property benefits from a diversified income stream and has the potential to generate additional rental growth over the medium term.
It was recently extensively refurbished and given a seismic upgrade to 80 per cent of new building standard (NBS).
The internal fit-out has a combination of polished concrete and carpeted flooring with exposed concrete beam ceilings and suspended fluorescent lighting. All floors are air conditioned and the building is fitted with smoke and heat detectors, Thompson says.
Level one above the carpark level comprises a reception area with a boardroom, meeting room and an open-plan office area; while Level two has been partitioned into two separate office areas.
Level three has been refurbished to a high standard and includes a reception area, a boardroom, breakout rooms and an open plan office.
With its elevated position on the 392sq m site, the site also lends itself to residential conversion in the future.
“This property is in the coveted Double Grammar Zone [Epsom Girls Grammar School and Auckland Grammar School], and with no real easing of the housing shortage in Auckland, a new owner could look at the residential conversion option.” says Thompson.
“Bath St is zoned Town Centre under the Auckland Unitary Plan and has a 13m height limit. Subject to council approval, the office floors could be converted either into two apartments per floor with a full floor penthouse, or one luxury unit per floor to take full advantage of the property’s north-facing harbour views and generous parking.”
Thompson says new apartments in the city and fringes have been reaching in excess of $15,000 per sq m and there are several luxury apartment blocks under construction in Parnell alone. These include 24 York St, 28 York St, OneThree Cheshire and the Parnell Central Apartments.
“Parnell is undergoing a renaissance, with a wave of new retail, office and hospitality developments under way. This was helped by the opening of the Parnell train station, just 500m south of 27 Bath St,” says Thompson.
“Plenty of anecdotal evidence indicates Parnell is a popular investment location. In May, following multiple bids, Whillans Realty Group sold the Parnell carpark building at 292-294 Parnell Road for $7,088,000 or $9488 per sq m.”
Henry Thompson, Whillans Realty Group.