Sale Street building a feature in new portfolio
This three level building is for sale at 18 Sale St in Auckland’s Victoria Quadrant.
A freehold three-level building in the heart of Auckland’s Victoria Quadrant is among 30 commercial properties featured in the Colliers International’s latest New Zealand Portfolio publication released this morning (Subs: Saturday November 8).
“This property at 18 Sale Street is in a prime position located right in the middle of Auckland city’s go-ahead commercial property pockets,” says Andrew Reed of Colliers International who, with colleague Charlie Oscroft, is marketing it for sale by international private treaty closing at 4 pm on Wednesday, December 10.
“It’s just the right sort of property that investors and developers have been looking for – low maintenance and with ACC as a highly desirable government tenant that really makes the property an investment jewel,” says Reed.
He says the property sits right on the edge of the CBD, Wynyard Quarter and Ponsonby which are all undergoing commercial rejuvenation, development and growth.
“Nearby Wynyard Quarter is rapidly becoming one of Auckland’s premier Mixed Use locations, with proposed hotel, residential and commercial development. The area already houses Air New Zealand, ASB and will soon be home to Fonterra and several other key corporates.
“The transformed and funky City Works Depot which hosts a major advertising agency, avant garde eateries and media businesses is right next door to 18 Sale St while Victoria Park is on the other side.”
ACC has three years still to run on its lease generates a net rental income of $740,000 per annum.
Oscroft says net rentals for new offices in the immediate vicinity are reaching more than $400 per sq m which underpins the property’s investment and development potential.
“The security of the cash flow to a government tenant is a key selling point, and with a weighted average lease term of about three years, an incoming owner could see probable rental growth when the current period ends.”
He says the building particularly appeals because of its ‘workable’ size with a 3150 sq m net lettable area that could interest a large number of potential tenants. “It’s not too big and not too small.”
Oscroft says the property could also attract developers wanting to add value to a well-positioned site. “They could keep the existing structure and refurbish it or undertake a significant redevelopment.”
Construction is of reinforced concrete pile foundations, columns and frames, with reinforced block walls and pre-stressed DRIcore flooring. Three storeys of office space are complemented by one basement level with secure car parking for 30 vehicles. There are an additional 15 open space car parks on site.
“The building has an A-plus grade for earthquake performance which will comfort investors who are aware that many buildings require significant upgrades and associated costs,” Oscroft says.
He says that under the Proposed Auckland Unitary Plan the property would be zoned City Centre which could lead to significant future redevelopment opportunities.
“Adding to its appeal is the immediate access to Auckland’s motorway system with on and off ramps within a few hundred metres to the north, east, west and south of the city.”
Reed expects the property will attract strong interest from family trusts, developers and high net worth buyers from New Zealand and across Asia.