Tenanted investment on Princess Wharf
The leasehold interest in 9/145 Quay St – identified by an orange border - runs through September 2095. Photo / Supplied
A high-end Princes Wharf property on a leasehold title, with a hospitality tenant, is being sold by Wilson and Hurst.
The leasehold interest in the property at 9/145 Quay Street runs through September 2095 with two leases to a single tenant earning a combined $110,000 net per annum.
“A feature of this leasehold property is that there are no ground rent payments or hikes to worry about,” says Everett Jaura, Wilson and Hurst commercial broker.
“Ground rent was pre-paid for the term through to September 2095, thanks to a well-structured lease arrangement. This provides the certainty that any business or investor requires before making a commitment to real estate.”
Jaura says certainty of occupation for the next 78 years, in the hub of a rapidly growing city like Auckland, should be a positive consideration for all investors and owner-occupiers who take a long-term view.
The sale is through an expressions of interest campaign, concluding March 30 unless the property is sold earlier by negotiation.
Zoned Business City centre, it would equally be ideal for offices and as well as its present hospitality use, says Wilson and Hurst principal and director, Finn Hurst.
“The location between Britomart and Wynyard Quarter precincts positions this property among high-end restaurants frequented by many upwardly-mobile city professionals,” he says.
“The foot traffic here is supplemented by the constant stream of well-heeled tourists from the Princess Wharf Cruise Ship Terminal.”
Hurst says the modern building has a 178sq m floor area and a rating valuation of $990,000. It was built to 100 per cent of the New Building Standard (NBS).
Buffalo Bar and Grill pays $75,000 in annual rent and the remaining $35,000 net pa comes from The Lounge Bar which is also used for private functions. Both businesses are run by the same operator.
The tenancies commenced December 2015, with the current term ending December 2019 and final expiry in 2031. Ratcheted market rent reviews happen every two years in December.
The agents say the property has an exceptional prominent downtown location, with spectacular harbour views.