Viaduct Harbour building with Orca aboard
Orcacom House is for sale at 32 Market Place, Viaduct Harbour.
Orcacom House, a modern five-level office building, in Auckland’s popular Viaduct Harbour precinct is being marketed for sale as a commercial property that will appeal to both owner-occupiers and investors, and which could have residential conversion potential.
“This is arguably one of Auckland’s most sought after commercial and residential locations,” says Bill Carlson of Barfoot & Thompson Commercial who is selling 32 Market Place, Viaduct Harbour, by tenders closing at 4pm on Tuesday June 2, unless it sells earlier by negotiation.
“With Level One vacant and the Level Three tenant vacating in July, there is plenty of space available for an owner-occupier to move into while also drawing an income from other tenants,” Carlson says.
The building was constructed in mid-2006 and is located within a Mixed Use development known as The Parc. It has a total net lettable area of 1135sq m and comes with 18 car parks and storage space located within the basement level of The Parc complex.
Carlson says the property is particularly suited to an owner-occupier who could occupy 518sq m of vacant office space and draw rent from four separate remaining tenants currently paying $221,179 net per annum for a total leased area of 617sq m.
“It will also appeal to investment buyers as the owner is prepared to underwrite the rental for the vacant 518sq m of space for three years from settlement date if required which would generate a net annual income of $394,469 plus GST.
“And it might also attract developers with the possibility of the offices being converted into residential apartments,” Carlson says.
The Parc development, in which the building is integrated, comprises a series of mid-rise office and apartment buildings built around a landscaped central open space area. The complex has a shared basement carpark with additional on-site facilities including a swimming pool, a spa pool and a gymnasium.
Each level has views over the central open space area and the office occupants have access to the gymnasium and pool facilities. Access to the car park is from Market Place and Pakenham Street East.
“The building is on a 911sq m Viaduct Harbour Holdings Limited leasehold site so we expect it will sell relatively cheaply and show a very high double digit yield,” Carlson says.
The building’s construction is of reinforced concrete column and beam structure; concrete slab floors with pre cast concrete; and concrete with painted plaster (or similar) cladding. The joinery is aluminium and the roof Longrun steel.
The building is serviced by a single 900kg 12-person lift providing access to the office levels and basement parking. The office accommodation is air conditioned with carpet floor coverings, plasterboard walls and suspended ceilings with recessed fluorescent lighting. Male and female amenities are provided to each level along with kitchenette facilities.
“An assessment by Stephen Mitchell Engineers Limited gives the building a probable seismic rating of 127 per cent of New Build Standard with a seismic grade of A-plus,” says Carlson.
The property is located to the north-eastern perimeter of The Parc development on the western side of Market Place and is close to the intersection with the main CBD thoroughfare of Customs Street West.
The site is of an irregular shape and has a frontage to Market Place of some 26.53 metres and a mean average depth of about 34 metres. “It appears to be of a level contour with the basement car park excavated from beneath the building.”
The current zoning is Harbour Edge Strategic Management Area under the Auckland Council District Plan Operative but it is zoned City Centre under the Proposed Auckland Unitary Plan.
Carlson says the Viaduct Harbour Holdings Limited ground lease is for 15.5 years commencing July 4, 2003 and expiring December 31, 2018.
“However, the lease has perpetual renewable terms of 21 years each,” he says.
The present ground rent payable is $124,893 plus GST to be reviewed on January 1, 2019 (and, if renewed, every seven years thereafter) to the current market rental of the unimproved value of the freehold land.
Bill Carlson, Barfoot & Thompson Commercial.