Situated on the prominent corner of Taranaki and Abel Smith Streets, the four-level office building is partially tenanted with leases expiring 2024-2026 and returning net passing income of $507,216 per annum.

Tenants include Toshiba, RE/MAX, and NZME, who have moved their staff from the building but kept their equipment on-site and has an active lease through until late-2026.

Mark Walker and James Higgie, Bayleys Wellington Commercial are marketing the property by tender, closing 4pm 2nd November.

Last refurbished in 2012, when it underwent an interior upgrade along with strengthening and bracing, the property has recently been assessed by structural engineers Silvester Clark using the yet-to-be-prescribed C5 amendment to current technical guidelines and requires further strengthening.

Walker says the C5 or “yellow chapter” method of seismic assessment has higher resilience thresholds than the current mandated standards for existing buildings, however, engineers have developed a concept strengthening scheme for the subject property which would bring the building to the required contemporary standard.

“The building owners, a charitable trust that supports community initiatives, have front-footed the seismic issues and we understand from the engineers that while the building’s resilience should be addressed to bring it up to the higher seismic thresholds, it is not currently deemed an earthquake-prone building.

“The trust is divesting some of its commercial property assets and acknowledges that a new owner could be better placed than they are to reposition the building in the market.

“There is clear opportunity for a proactive purchaser who is prepared to undertake a strengthening upgrade to either maintain the building as an office asset, or to convert the property to residential use – with both options having traction in the current market, which is short of stock in both of these sectors.

“Given the pivotal location on the edge of town, there’s appeal here for a buyer who can see the bigger picture and is prepared to invest in the structural integrity for ultimately a better return down the line.”

Zoned Central Area, the property sits on a 1,128sqm corner site with 27 car parks.

It has a floor area of 4,090sqm and boasts large floor plates, has windows on three sides, and all services are in a central core, making the building a prime contender for residential conversion, or for further upgraded office accommodation which is in tight supply in Te Aro.

“Significant holding income creates a cashflow buffer while structural and/or redevelopment plans are formulated and actioned,” says Walker.

“On the opposite corner, the building at 180 Taranaki Street is undergoing strengthening and will be repurposed for residential use which mirrors other activity in the area.

“Broader Te Aro has been gradually converting to residential use, with many existing buildings that had been light industrial or service orientated being demolished to make way for apartments.

“Being within an easy walk of the popular Cuba and Courtenay precincts, close to the Massey University campus and handy to the motorway system, the subject property on a decent-sized block of city land represents a chance for some lateral thinking around the building’s future.”

Click here for more information on the listing.